The two charts above show Weekly candles of Gold in US dollars & Gold in Indian rupees, from NYMEX & MCX respectively.
As you can see from the charts Gold NYMEX started to loose ground in late 2011 & attempted a weak rally to stop a bear market. Whereas during the same period Gold MCX continued to trend up until early 2013, touching record highs.
Gold MCX did finally start its own bear trend in 2013. There was a similar but much stronger attempt by the Indian counterpart, to break out of the bear market. But finally resulting in a failure.
Both have since been bearish, while Gold NYMEX lost some ground, it was not the same for Gold MCX which remained largely sideways.
Looking at the larger picture there's some good news in all this. We're seeing Gold form a base & maybe a very strong one, which might be a launching pad for a renewed up-trend. Let's take a look at the resistances & supports on both Gold listings which can help us better understand the future of Gold.
The resistances & supports seen in Gold NYMEX are as follows :
R3 - 1220.5
R2 - 1210
R1 - 1196
S1 - 1176.5
S2 - 1155.5
S3 - 1110
The resistance at 1196 & 1210 form a strong resistance zone, which if broken & held by an up-move can result in a very large & stable up-move in Gold very soon. Gold NYMEX however need to stay above this consistently to show strength & have a stable bull run.
Supports at 1155.5 & 1110 are very strong & may hold well when tested. If they do fail we'll see a continued slide in Gold prices. Test of these support levels may be very possible.
The resistances & supports seen in Gold MCX are as follows :
Critical Pivot - 29064.5
R3 - 26688.5
R2 - 26324
R1 - 26304
S1 - 26143
S2 - 25739.5
S3 - 25698
The resistances mentioned above are important for Gold MCX to gain stability but will not signal the start of a renewed up-trend. For an up-trend to begin Gold MCX needs to move above another critical pivot of 29064.5. This is where a very large resistance zone is formed & Gold MCX will need to be over this zone & its prices will have to hold above 29064.5 if any future up-trend can sustain.
Supports at 25739.5 & 25698 are important for Gold MCX & price have to hold above these supports to prevent a continued bear trend.
That's our take on Gold NYMEX & Gold MCX. Do leave a comment if you like the content & don't forget to follow us on your favorite social media sites for more such content posted daily.