COMEX Gold has been moving in overlapping manner from few months but upmove was witnessed in MCX Gold because of the depreciation in Indian currency. It is important to track this commodity as it is considered as one of the safe haven asset. Below is the chart showing detail analysis of if we can witness uptrend in this precious commodity.
MCX Gold weekly chart:
COMEX Gold weekly chart:
COMEX Gold has been moving in an overlapping fashion after witnessing a steep fall from 1800 levels. However, from past few weeks some recovery is being witnessed. Let us see if Gold now starts to glitter!
Interestingly the chart of MCX Gold and Comex Gold is very different. This has been primarily due to the movement in Indian currency – USDINR. Gold in INR terms has shown strong outperformance due to depreciating Rupee. We have shown detailed Elliott wave pattern for both Gold in INR and USD terms.
Elliott wave perspective: COMEX Gold is now under Complex Correction pattern which is further subdivided into wave w-x-y-x-z. As of now wave (W) has completed on downside and wave (X) is ongoing on upside. Prices are forming Flat correction pattern within this wave (X). Minor wave (a) showed a smart rally from 1050 levels making a high near 1370 levels. Post wave (a) overlapping movement is being witnessed in form of wave (b). If break above …. is witnessed it will indicate termination of wave (b) on downside and start of wave (c) on upside. It seems that the downtrend in global equity markets might provide positive strength to Gold which will act as a safe haven asset.
Exponential Moving average: This ??? weeks EMA has been able to capture major moves of COMEX Gold and it has been working amazingly well. It was acting as resistance when prices witnessed a fall from the highs of 1800 levels to 1050 levels. ………………
MCX Gold: Gold in terms of INR has continued to move higher and has been moving in the blue channel. However, we are yet to see a strong trend here but overall tone has been bullish. There is possibility that we are in Terminal wave 5 and therefore there is corrective rise. We will keep this as the preferred scenario and move above ??? will further validate our positive outlook. This combined with independent outlook on COMEX Gold suggest positivity.
In short, Gold overall tone looks to be bullish both for MCX and Comex. It is best to use any dips as buying opportunity in this asset and any doldrums in global equity markets might provide further positive thrust to this asset class. For MCX Gold we can expect break above …………….
The above analysis clearly shows how well these techniques work. Get access to amazing research like this on major indices as well as various asset classes in our monthly report published under the name of “The Financial Waves Monthly Update”.
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