We had mentioned in our research note dated 25th May 2014, that gold is bearish as long as it remains below 28800. If support of 25000 is broken, gold may fall to 18000 in the next two years. (Please click here to read)
We reiterate our views that gold is in long term bearish trend as long as it remains below 28800. It has its next support at 26000 and if that is broken, it will test its most important support at 24,000 which is a 38.2% Fibonacci level.
A decisive breach of this support will indicate a major bearish fall. Gold can then tumble up to 18000 by year 2015 – 2016. Gold may be purchased on dips for jewellery but incremental investments of investible funds should be made in equity or debt for long term returns.