Gold price prediction today: Gold prices are showing a technically bullish trend, says Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities. However, he believes that traders should not look to chase the rally at higher rates:MCX Gold October futures continue to trade with a firm bullish bias, with prices holding near Rs 1,60,900 after extending their recent uptrend. The chart shows a clear sequence of higher highs and higher lows, supported by positive moving-average alignment and sustained buying interest.While prices are trading at elevated levels and the RSI has moved into the overbought zone, the strength of the trend suggests that dips are likely to attract fresh buying. Traders may therefore consider a buy-on-dips strategy near Rs 1,60,600–Rs 1,60,700, with a protective stop-loss below Rs 1,59,500, targeting Rs 1,62,000.
Technical Setup
EMA 8 & EMA 21:The short-term moving averages remain positively aligned, with the 8-period EMA trading above the 21-period EMA. Both averages are rising sharply, confirming strong underlying bullish momentum. Prices are comfortably positioned above the moving averages, indicating that the broader short-term trend remains firmly positive.Bollinger Bands:Gold is trading close to the upper Bollinger Band, reflecting strong buying pressure. Although this positioning increases the possibility of intermittent profit booking, the absence of a major reversal signal suggests that the upper-band expansion can continue. A pullback towards the Rs 1,60,600–Rs 1,60,700 region can therefore offer a favourable entry rather than chasing the price at higher levels.Pivot Points:The pivot structure remains supportive as Gold continues to trade above key pivot and support levels. The immediate support zone around Rs 1,60,600 is important for maintaining the bullish intraday structure. Sustained trade above this zone can keep the upside momentum intact and open the way towards higher resistance levels.RSI (14):The RSI is around 71, indicating an overbought condition. However, in a strong trending market, an elevated RSI can persist for an extended period and should not by itself be treated as a reversal signal. A sustained RSI above 60 continues to indicate strong underlying momentum.MACD:The MACD structure remains supportive of the bullish trend, with momentum continuing to favour the upside. Positive price action along with the rising moving averages indicates that buyers remain active.
Intraday Trading Strategy
Strategy: Buy on Dips
- Buy Zone: Rs 1,60,600–Rs 1,60,700
- Stop-Loss: Below Rs 1,59,500
- Target 1: Rs 1,61,500
- Target 2: Rs 1,62,000
Gold Price Outlook
Gold’s technical structure remains strongly bullish, supported by a sustained sequence of higher highs and higher lows, positive EMA alignment and prices trading well above key support levels. Although the RSI near 71 signals an overbought market, the strength of the underlying trend suggests that profit booking should be viewed as a potential buying opportunity as long as the key support of Rs 1,59,500 remains protected.Traders should avoid chasing the rally at elevated levels and instead wait for dips towards Rs 1,60,600–Rs 1,60,700. A sustained hold above this zone can keep the momentum intact and support an extension towards Rs 1,61,500–Rs 1,62,000 during the intraday session. A decisive break below Rs 1,59,500 would weaken the bullish setup and warrant caution.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)
