Gold in Indian Rupees had a fantastic run when it touched a high of 29713/g in the month of November 2011. Since then the metal has been trading in a range. Last close was at 27110/g in Jan 2012. Since Feb 2011 Gold has returned a net 36.81% (Not including transaction and storage charges) which is a decent return on the metal for the layman who would not want to bet the farm on non trending markets that the public has faced since the top sometime in November 2010.
Lets then just update ourselves what Gold is probable to do. Lets look at the monthly charts first. The euphoric volume has certainly died down and Macd has been forming lower histograms. After a huge negative month in december 2011 Gold made a bullish harami pattern suggesting the fall was done. Now Gold seems to be flat correcting itself when the rupee has bounced off from the lows and trending upwards. Thus flattish correction for Gold is very bullish for long term fundamentals.
Looking at the weekly charts - Gold seems to have made the panic bottom and is just bidding its time to correct in an environment when INR is strong and markets (stocks) in India and across the world are turning bullish.
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