Gold has garnered terrific upside in 2016 following US Rate hike decision and equally supported by Brexit Vote in June this year. COMEX Gold has rallied by more than 30% in H1 2016. While many predict this is just the beginning as the world gets more and more uncertain in economic policies.
MCX Gold on the other front has also seen upside of more than 25% as prices hit 2 years high at 32500 levels. Global economic uncertainty has been the crucial driver for the tremendous buying in gold as the alternative to paper currency. Technically, MCX Gold is traversing along the upward sloping channel and the mount of buying the chart candle stick shows suggests the prices would find it terribly difficult to slow down its upward journey. MACD positive cross over in monthly charts provides enough confidence to support our view. The channel looks more of a consolidation phase before the buying resumes and thus investors should see this opportunity to consolidate as much as they can.
CommTathya maintains long term positive outlook for the yellow metal with upside potential as high as $1530/oz in H2 2016. For detailed report and strategy one can write up at email@example.com.