Gold Price Prediction Today: Analysts Highlight Intraday Weakness, Key Levels to Watch
Gold prices are currently exhibiting notable weakness on an intraday basis, according to market experts. Jateen Trivedi, Vice President Research Analyst for Commodity and Currency at LKP Securities, has provided insights into the current market dynamics and shared a strategic outlook for gold investors. This analysis comes as gold futures trade near the ₹1,64,200 mark, following a corrective bounce from lower levels observed recently.
Intraday Market Structure and Technical Setup
The broader intraday structure for gold continues to reflect persistent weakness, with prices struggling to sustain above the short-term resistance band. The recent recovery appears to be more of a pullback within a broader downtrend, rather than a genuine reversal. This pattern keeps the overall bias tilted toward selling on higher levels, as the market fails to demonstrate strong bullish momentum.
Technical indicators further reinforce this bearish outlook:
- EMA Structure: The price is currently trading below the short-term moving average cluster, with rallies facing consistent rejection near key resistance levels. The inability to reclaim higher resistance zones suggests that supply dominance persists, particularly in the ₹1,65,000 to ₹1,66,000 band.
- Price Structure: On the intraday chart, the formation of lower highs and lower lows confirms a short-term bearish trend. The recent consolidation phase lacks strong bullish follow-through, indicating that the bounce is corrective in nature rather than impulsive.
- Momentum Indicators: The Relative Strength Index (RSI) remains below the strong bullish zone and shows no signs of breakout momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator stays in negative territory despite minor flattening, pointing to underlying selling pressure that continues to weigh on prices.
Key Support and Resistance Levels for Gold Investors
For investors and traders monitoring gold prices, several critical levels have been identified based on the current technical analysis:
- Sell Zone: The primary resistance area is identified between ₹1,65,000 and ₹1,66,000. Repeated rejections near this cluster strengthen the sell-on-rise outlook, making it a key zone for potential selling opportunities.
- Immediate Support: The immediate support level is placed at ₹1,62,800. A break below this level could signal further downside momentum in the short term.
- Major Support Target: The major support target is set at ₹1,60,000, which represents a significant psychological and technical level for gold futures.
- Invalidation Level: The bearish scenario would be invalidated if prices manage to climb above ₹1,69,000, which would indicate a potential shift in market sentiment.
This detailed analysis provides gold investors with a clear framework for navigating the current market conditions, emphasizing caution and strategic positioning in light of the prevailing bearish trends.
