From : https://economictimes.indiatimes.com/markets/stocks/news/this-is-why-it-may-be-a-good-idea-to-invest-in-gold-this-akshay-tritiya/articleshow/63810462.cms

 

 

                                                                         

 

 

Technical indicators show the ongoing rally in gold is likely to continue in the near term. That could be a good reason for you to consider adding some yellow metal to your portfolio this Akshay Tritiya.

 

Weekly gold price charts show a bullish Ascending Triangle formation. Momentum indicator Moving Average Convergence Divergence or MACD has reflected a positive crossover with a fresh buy signal even as it traded above the signal line, which is a bullish signal.

 

Gold is inversely related to the US dollar. “The USD is likely to weaken a bit and this can further aid the likely spike in gold price,” said Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory.

 

 

                                            

 

 

“If international price of gold moves past $1,370, it will result in a breakout from the Ascending Triangle formation. There are high probabilities of the breakout occurring over the coming weeks,” said Vaishnav. The metal is trading around $1,340 in global markets.

 

Even as gold consolidates in a range, OBV or on balance volume has already started rising, which indicates more buy volume than sell volume. RSI is marking higher bottoms and is on the looking for a breakout from a formation – another bullish indication.

 

On the domestic front, gold prices are in a medium-term uptrend for last four months. They have jumped nearly 9 per cent to Rs 31,058 per 10 gm as of April 17 from Rs 28,421 on December 13 last year.

 

Best buying opportunity in yellow metal would only on a sustainable breakout above Rs 31,562 level, says Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartview India.

 

As this metal is moving in an Ascending Channel for last 16 months, such a breakout shall throw up a lucrative target of around Rs 34,500 over time. A more realistic target for the near term would be Rs 32,455. Till such a breakout occurs, this metal is likely to move in the Rs 31,562-30,900 range, whereas short-term selling pressure can be expected on a close below Rs 30,850 level, he said.

 

 

https://economictimes.indiatimes.com/markets/stocks/news/this-is-why-it-may-be-a-good-idea-to-invest-in-gold-this-akshay-tritiya/articleshow/63810462.cms