Gold Approaching Lifetime High

Silver contract for March ended flat last week, while gold futures for April rose 1.8%

- Akhil Nallamuthu

MCX COMDEX, the composite commodity index of the Multi Commodity Exchange (MCX), depreciated last week to 3,833 points following a decline in crude oil prices.

The rally in gold could not restrict the downside as its weight in the index is comparatively less.

While the crude oil weight is around 33 per cent, the weight of gold is around 17 per cent.

Since crude oil is likely to witness a downside further, there seems to be no relief for the index.

In the short-term, it can fall to 3,760.

MCX-Crude (₹3,677)

The February futures of crude oil at the MCX continued to decline last week. The contract breached a key support at ₹3,780, further increasing the possibility of a decline. Notably, the 21-day moving average crossed below the 50-day moving average — a bearish indication.

The contract closed with a loss for a fourth consecutive week. The moving average convergence divergence indicator in the daily chart shows a substantial bearish momentum as it extends deep into the negative territory.