MCX Gold price has formed a double bottom pattern formation on the daily chart as shown in the chart. Last week, the price sustained above the neckline of the pattern and closed the week comfortably above the same. For the current week, any dips towards immediate support at Rs.27500 level should be taken as a buying opportunity for the upside target of trend-line resistance R at Rs.28600 level.
The 14-period RSI is holding well above the 50 mark, and is making higher tops and bottoms which indicate positive momentum.
For the current week, unless the lower band of the channel at Rs.27200 is not taken off on a daily closing basis, the price could trade higher and move towards the Rs.28600 level. Buying on dips is advisable for the short term.