Gold climbed toward $1,300 an ounce after trading last week in the range of $1300-1280 as investors weighed safe haven demand from worsening tension between Ukraine and Russia against the dollarís strength on signs the U.S. recovery is gaining momentum. In June, Fed meeting minutes forecast they would raise the federal funds rate above zero sometime next year, without specifying a month.
For next week, we can expect COMEX Gold October Futures prices to trade on positive note as ongoing geo-political tension between Russia-Ukraine. Technically COMEX Gold if it sustain above the level of $1320 then it can test the levels of $1340 and $1360 on the upside. If MCX Gold October futures sustains above 28600, then upside movement can be seen till the levels of 28800 and 29000.
By Vivek Gupta (Director Research, CapitalVia Global Research Ltd)