Gold price jumped more than 1 percent to a three-week high on Tuesday as investors continued to eye Greece’s future in the Euro zone and await upcoming Federal Reserve minutes for hints on the timing of an interest rate hike widely expected this year. Political uncertainty in Greece ahead of the country’s elections on Jan.25 has renewed fears of a possible Greek exit from the Euro zone.
Gold futures were likely to find support at $1,180 an ounce and resistance at $1,255.
In upcoming days, we can expect COMEX Gold February Futures prices to trade on positive note on the back of concern over Greece’s future in the Euro zone. Technically If COMEX Gold breaks the level of $1223 then it can test the level of $1250 and $1280 on upside. If MCX Gold Feb futures sustains above the levels of 27500 on upside then upward movement can be seen till the levels of 27700 and 28000.
Vivek Gupta, CMT-Director Research, CapitalVia Global Research Ltd.