Gold Price Prediction Today: Analysts Recommend Buy on Dips Strategy Amid Recovery
Gold prices are experiencing a steady recovery in the current trading session, prompting market experts to advocate for a strategic buy-on-dip approach. According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, this method capitalizes on the ongoing upward momentum while managing risk effectively.
Market Performance and Technical Setup
Gold futures on the Multi Commodity Exchange (MCX) are currently trading near ₹1,45,500, marking a significant recovery from recent lows. The price action indicates stabilization above key short-term support levels, with momentum gradually turning positive. This structure suggests that market dips are being actively bought into, reinforcing an intraday bias towards continued recovery.
Technical indicators further bolster this bullish outlook:
- The price has reclaimed the short-term Exponential Moving Average (EMA) cluster, with EMA 8 crossing above EMA 21, signaling improving bullish momentum.
- Gold is moving from the mid-band toward the upper band on technical charts, indicating strengthening momentum. Any pullback toward the mid-band is likely to attract fresh buying interest.
- The chart reflects a formation of higher lows after the recovery phase, pointing to accumulation at lower levels and supporting the buy-on-dips strategy.
- Relative Strength Index (RSI) is near 66, showing strong momentum without reaching extreme overbought levels, thus leaving room for further upside.
- Moving Average Convergence Divergence (MACD) is in positive territory with a bullish crossover, confirming the strengthening upward momentum.
Strategic Trading Recommendations
Based on the technical analysis, the recommended strategy for traders is to buy on dips. The entry level is set at ₹1,45,000, with a stop-loss placed below ₹1,43,500 to mitigate potential losses. The target for this trade is ₹1,48,000, offering a clear profit objective.
The bias remains bullish as long as prices sustain above ₹1,45,000, with weakness only anticipated if levels fall below ₹1,43,500. This approach leverages the constructive intraday technical structure, supported by bullish EMA alignment, strong RSI momentum, and positive MACD signals.
Disclaimer: Recommendations and views on the stock market, other asset classes, or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India or Bharat Horizon.
