MCX Gold sideways; support 26000, resistance 26300

For intra-day, support for the commodity is seen at 26000 and below that it could test level of 25850. Resistance is seen at 26300. MCX Gold futures for August delivery was seen trading up by 0.40 % at Rs. 26212 per 10 grams as of 05.12 PM on Tuesday.

MUMBAI : The trend in gold futures for August delivery on India's Multi Commodity Exchange (MCX) looks sideways for the day and traders are advised to book profit in a narrow range.

For intra-day, support for the commodity is seen at 26000 and below that it could test level of 25850. Resistance is seen at 26300, according to our analyst at Commodity Online.

MCX Gold futures for August delivery was seen trading up by 0.40 % at Rs. 26212 per 10 grams as of 05.12 PM on Tuesday.

Gold rose to one week high in London after Chinese inflation rate rose more than expected. The yellow metal is also recorded an up-tick in the Asian markets.

Analysts said that the precious yellow metal is likely to extend gains in Asian markets during the day on continued bargain hunting and also on a strong dollar.

Chinese inflation data boosted gold's appeal as a hedge against rising prices in the world's second-biggest buyer of the metal.

Chinese producer price index (PPI) continued its negative trend and recorded a fall of 2.7% in June. Also, Chinese consumer price index rose to 2.7% in June from 2.1% in May, year-on-year basis, according to the data released by the National Bureau of Statistics of China.

Traders are awaiting yearly data on Chinese imports, exports and trade balance which are scheduled to be released on Wednesday.

Concerns that US Federal Reserve may roll back its monetary stimulus on recovering economic growth in the United States is putting pressure on the yellow metal prices to certain extent.

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Gold imports by India,dropped by a whopping 130.5 tons in June from a month ago, is likely to revive in July on monsoon and festival season buying.

Analysts said monsoon buying is key to country’s gold sector as most people,many of them are farmers, living in rural areas buy gold after bountiful June-September monsoon rains, which boost summer-sown crops, including rice.

Gold futures for August delivery on Globex platform of Comex was seen trading up by 1.15% at $1249.65 per troy ounce as of 05.22 PM IST on Tuesday.