Gold Price Recovery: Analyst Recommends Buy on Dips Strategy
Gold prices are showing signs of recovery after a recent sharp decline. Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, recommends a buy on dips strategy for gold August futures on MCX.
Prices have formed a short-term base around the ₹1,46,400–₹1,46,600 zone and are attempting a recovery supported by improving momentum indicators. The recent rebound from intraday lows suggests that bargain buying and short covering are emerging at lower levels, making a buy-on-dips strategy favorable for the session.
Technical Setup
Price Action and Trend
After a steep decline, gold has started forming higher lows on the 15-minute timeframe. The recovery above the immediate support zone indicates that bearish momentum is easing and buyers are gradually regaining control. Sustaining above ₹1,46,900 is likely to keep the recovery intact.
Moving Averages
Prices are attempting to move above the short-term EMA cluster. A sustained trade above the ₹1,47,000 mark could trigger further upside momentum towards nearby resistance levels.
Volume Profile Analysis
The highest traded volume is concentrated around ₹1,46,700–₹1,47,000, highlighting a strong demand area. This zone is expected to act as immediate support during intraday pullbacks.
MACD Indicator
MACD has witnessed a bullish crossover from deeply negative territory. Rising histogram bars indicate strengthening upward momentum and suggest that the recovery move may continue.
RSI Indicator
RSI has recovered towards the 43–45 zone from oversold levels, reflecting improving momentum. A move above the 50 mark could further strengthen the bullish outlook.
Support and Resistance
- Immediate Support: ₹1,46,900 – ₹1,47,000
- Major Support: ₹1,46,400
- Immediate Resistance: ₹1,47,500
- Key Resistance/Target: ₹1,47,750
Intraday Trading View
- Strategy: Buy on Dips
- Entry Zone: ₹1,46,900 – ₹1,47,100
- Stop-Loss: Below ₹1,46,400
- Target: ₹1,47,750
- Bias: Bullish above ₹1,46,400
Gold is showing early signs of recovery after a sharp decline, supported by improving MACD momentum, recovering RSI readings, and strong volume-based support near ₹1,47,000. As long as prices hold above ₹1,46,400, the short-term structure favors a rebound towards higher resistance levels. Traders may consider accumulating longs near ₹1,46,900–₹1,47,100 with a strict stop-loss below ₹1,46,400 for an upside objective of ₹1,47,750.
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.
