Above 26,890, gold may touch 27,250
Gold dropped 23% last quarter as Bernanke said that the Fed bank may reduce its USD 85 billion of monthly asset purchases this year. Minutes of a Fed policy meeting that showed many officials wanted to see more signs of improving employment before backing a cut in bond buying. Last Week MCX Gold August futures sustained above the level of 25,850 and by breaking the upper level of 26,430 it touched the level of 26,850. Here it took resistance and came down. MCX Silver also sustained above the level of 39,800 and it broke the level of 40,800 and touched the level of 41,900.