Gold futures on the Multi Commodity Exchange (MCX) have shown notable stability, trading around ₹1,08,979 as traders remain on the lookout for significant US economic data and insights regarding the Federal Reserve’s upcoming policy meeting in September. The market dynamics are underscored by speculative expectations regarding a potential rate cut, which is bolstering the appeal of bullion.
According to Jateen Trivedi, Vice President and Research Analyst for Commodity and Currency at LKP Securities, current trends in gold prices exhibit bullish potential. He advocates for a ‘buy on dips’ strategy, particularly as the technical setup continues to favor upward momentum.
As traders navigate market conditions, a detailed look at the technical indicators reveals several supporting factors. The Exponential Moving Averages (EMA) indicate that the EMA 8 is struggling to maintain its position above the EMA 21, suggesting a developing bullish momentum. As long as gold remains above ₹1,09,000, buying interest is expected to persist.
Furthermore, the Bollinger Bands reveal that gold prices are nearing the upper range, with indications of potential price breakout. The ideal strategy remains to pursue dip purchases around the mid-band, which is signified at approximately ₹1,09,000.
Regarding critical pivot points, the previous day’s support levels include ₹1,09,000 and ₹1,08,600, while resistance levels are identified at ₹1,09,800 and ₹1,10,000. A sustained trading pattern above these support levels would further validate the bullish outlook, potentially enabling an intraday price increase.
Additional analysis through the Relative Strength Index (RSI) shows a current reading of about 55, which is comfortably below overbought conditions, implying room for further upward movement. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator indicates a bullish bias, as it trades above its signal line and presents a positive histogram.
In summary, the intraday outlook for gold remains bullish, with technical indicators suggesting a favorable scenario for traders. The recommended strategy for investors is to buy on dips, particularly within the entry range of ₹1,09,000 to ₹1,09,050. Suggested stop-loss levels are set at ₹1,08,600, with an anticipated upside target around ₹1,10,000. Traders should remain vigilant, as bullish momentum is expected to continue unless prices dip below the critical threshold of ₹1,08,600.
