Gold (14.3.2016) traded higher in accordance with our expectations and snagged the $1280 mark. However strong resistance at $1280 was unbeatable.
Now gold is trading around the $1247 mark as we can see on the charts. While reaching the $1280 mark in the last few weeks gold made a rising wedge pattern just below the 161.8% fibonacci retracement level. We will be looking for a rising wedge breakout (most ideally downside) and then enter in trade.
On the fundamental side, the upcoming FOMC meeting will play an important role in gathering long term direction.
We prefer to flog with a rising wedge breakout for the most possible support area around the $1192 mark in coming weeks.
MCX levels -> S2(28670) S1(29050) cmp(29360) R1(29710) R2(30140)
Disclaimer: The above technical analysis is not a buy / sell recommendation.