Gold: Next round begins
MCX gold was trading just below the medium-term rising trendline. On the higher side, there were multiple resistances to put pressure on the yellow metal. The 40- daily exponential moving average and the daily upper Bollinger Band didn’t allow gold to move higher. In terms of the price pattern, gold formed a running triangle and broke out on the downside. Recently, gold bounced from the lower end of a falling channel towards the upper end and started the next leg on the downside. The daily momentum indicator completed a pullback cycle and is ready for a new cycle on the downside. Gold can fall towards the recent low, ie 29794, and the lower end of the falling channel, ie 29500. The reversal can be placed above the recent high, ie 30890.