Brokerage India Infoline expects a trading range of 31,600-32,850 rupees for gold on the Multi Commodity Exchange, it said in a report.
Gold could move in the range of $1,700-1,790 an ounce till the year end, according to the broker, as the market has been roiled by conflicting comments from Washington about the U.S. budget negotiations.
Global gold has recovered from a 1-1/2-week low of $1,705.64 an ounce hit on Wednesday, but it has been unable to break a strong resistance at $1,730 an ounce. Top U.S. Republican lawmaker John Boehner said on Thursday that the talks had made little progress, after expressing optimism about reaching a deal with the White House just a day earlier.
The brokerage has a buy recommendation for the MCX February contract at 31,700 rupees, for a target of 32,200 rupees with a stop loss of 31,400 rupees.
(Reporting by Siddesh Mayenkar)
Trending On Reuters
The NSE Nifty fell 3.4 percent on Thursday to the lowest since May 2014, its biggest daily fall in nearly six months as fears of a slowdown in the global economy hammered markets worldwide. Full Article