gold long term technical analysis
Mcx gold Oct future is trading at 24689 with loss. On monthly chart, gold prices are clearly topped out and entered in corrective mode. On chart we can see 25k and 29k are major resistances. 25k was breakout levels in Aug 2011. Which is now strong resistance for gold prices. On monthly closing basis this level remain important and below it gold long term outlook remain very bearish.
Gold below 25k level can slip up to 22.5k to 20k. some fundamental analyst suggesting comex gold prices up to 350$ in longer term means considering rupee at current level and other factor, in domestic market prices might fall up to 8000-10,000 rupees but I am not this view.
In my view, might find support in between 15k to 20k. My long term target still at 18k. If gold prices bounce back and maintain above 25k for 1-2 month then that might be reversal signal and fresh high above 35k can be expected. But as dollar index is moving technical suggest majorly downside for gold prices. For gold investors there is much more pain in future.