Gold: watch closely

From the high of 30,737, MCX gold has entered a correction mode. On the way down it has broken the key daily moving averages. In terms of the Fibonacci retracement, the yellow metal has retraced 50% of the previous rise. The 50-61.8% retracement mark is a strong support zone ie 29,100–28,750 respectively. Aggressive traders can look for contra trade opportunities in this range. A major support is at the 78.6% retracement mark ie 28,200. Once gold enters a pull-back mode, it can test its key daily moving averages ie 29,700–30,000.