Gold can slip further to $1550-1450: India Forex Advisors

MUMBAI: India Forex Advisors is of the view that gold is in a triangular consolidation phase with resistance at $1669 and crucial support at $1600. If the support is breached on a closing basis, then further downside up to $1550-1450 is expected.

According to the report, gold prices have been rallying since November 2008 till September 2011, supported by the Euro zone sovereign debt crisis and especially due to the challenges faced by countries like Greece, Portugal and Spain.

“Since September 2011, gold has been moving in a triangular consolidation. It is moving within the range of $1600-$1700. Looking at the moving averages, we can say that the 21 day EMA ($1669 level) is a strong short term resistance for the prices. The gold has been sustaining below this level since December 2012. 100 day EMA ($1601 level) is a strong immediate support for the commodity,” the report said.

“Going ahead, the levels of $1600 and $1700 will be closely watched for further direction. A break of $1600 on a closing basis will be very bearish for gold. If it breaks this level on the downside, then we might see further downside towards $1500-$1450,” it added.

At 04:50 pm, gold was near 6-month low at $1,591 per ounce, down $10.21 per ounce.