Now gold is trading around $1275 & we have witness a sharp bounce from recent low $1142 made just after a NO answer from swiss gold referendum. The bounce producing a major among trader that how actually this NO going to react. Here is the most possible answer.
Swiss gold referendum YES would force swiss banks to buy tonnes of gold to increase the gold holding from 8% to 20% but a NO answer is actually not going to change anything for gold normal trading. The panic selling come in first trading session was not supported by (see chart), while the NO answer avoided the immediate buying from swiss banks but now it is mandate for to buy gold from open market or off market.
Coming to technical picture, gold made a low of $1142 & now trading above $1169 which represent the 61.8% of last upside move till $1207. A stability above this mark with & a very positive divergence on day chart suggest that gold already digested swiss result & a technical upside move will continue for coming trading session. A break above $1207 will provide more strength & we may witness a quick move towards $1247.
MCX GOLD traded lower with spot gold however the correction more deeper due to removal of 80:20 rule by indian government & low . Still on technical front gold was able sustain above previous low. This particular move forming a pattern which is well supported by positive divergence as shown in the chart. Channel resistance situated around 26780 & if this is broken we may witness a sharp move 26900 & more.
Swiss gold referendum could prove a big trap if above technical picture stay alive.
Best of luck
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My gold target is $800.
Do not buy Gold and Silver untill a shortage develops. Shortage on Silver is now non-existent. I do not know about shortage status on Gold, but they are related in price. Dolllar has a long way to rise, including non-shortage condition.
Result is more downsite on the commodities.