Global Cues- gold

It was a splendid recovery in equities across the globe and the investor trepidation level too came down; as was indicated by the CBOE VIX’s decline to 59.8 from the peak of 89 recorded in the previous week. However, if we consider the movement over the last three weeks, most indices are moving sideways in a range resulting in wide week-to-week swings. The DJIA too is moving sideways and has closed near the upper boundary of this range. A close beyond 10400 is needed to signal that a sustainable recovery is underway in this index.
CRB index, that maps the commodity price movement, is recovering from the key support at 356. Though the recovery is not strong enough, the fact that the index is attempting to stabilize is a positive. Comex gold declined below the support at $730 to an intra week trough at $680. The next long-term support for the precious metal is at $650 and the third leg of the decline from March peak has the target at $630. A trough in the area between $630 and $650 is possible on a close below $700.