Commodity Radar: Gold offers up to Rs 3,400 upside this week. LKP Securities expert lists 5 technical indicators in support

Domestic gold prices surged by Rs 2,200 per 10 gram, or 1.4%, to Rs 1,60,600 on Monday, riding on positive global cues that aided gold's haven appeal. US-Iran tensions and President Donald Trump's 15% global tariff, following the Supreme Court's Friday decision striking down sweeping tariffs, triggered the rally.

The yellow metal prices on COMEX were higher by nearly 2%, or $99.30, trading at $5,180.20 an ounce around this time.

Commenting on the current trends, Jateen Trivedi, Vice President and Research Analyst at LKP Securities, said gold has stabilised after the sharp spike and correction seen earlier this month. The structure now reflects consolidation with a mild upward bias as prices attempt to build a base above the Rs 1,58,000 zone.


Rupee volatility continues to add premium swings in MCX compared with COMEX, making domestic dips attractive buying opportunities, he said.

Key support & resistance

After the spike towards Rs 1,60,000 and rejection from higher levels, prices corrected sharply but have since formed a higher base around Rs 1,57,000 to Rs 1,58,000, Trivedi said, adding that recent candles show compression and gradual higher lows, indicating accumulation.

He sees immediate resistance at Rs 1,60,000 to Rs 1,61,000, while major resistance is placed at Rs 1,63,500 to Rs 1,65,000. Meanwhile, immediate support is at Rs 1,58,500 to Rs 1,59,000 and major support at Rs 1,57,000.

A sustained move above Rs 1,60,000 can open momentum towards Rs 1,62,500, Trivedi said.

Also Read | Gold, Silver ETFs surge up to 17% as US-Iran tensions and tariff ruling boost safe-haven demand

Technicals

RSI

The momentum indicator RSI is near 55 to 56, recovering from oversold levels earlier. The indicator is gradually rising but is not overbought, suggesting room for further upside. Momentum is neutral to positive and supports a buy-on-dips approach.

Bollinger Bands

Bands have narrowed after earlier expansion, reflecting volatility contraction. Prices are trading near the middle band with a slight upward tilt. A breakout above the upper band near Rs 1,60,000 could trigger fresh momentum buying.

Moving averages

EMA 8 has flattened and is attempting to turn upward. EMA 21 remains supportive beneath price action. The fact that prices are sustaining above both averages indicates a short-term bullish structure. The Rs 1,57,000 zone coincides closely with EMA support.

MACD

The MACD histogram is stabilising after prior weakness. Momentum is attempting to shift positive again. A bullish crossover confirmation would strengthen upside conviction.

Gold trading strategy, buy on dip

Buy Zone: Rs 1,58,500 to Rs 1,59,000
Stop Loss (closing basis): Below Rs 1,57,000
Targets: Rs 1,61,500 to Rs 1,62,500

The target implies a 2% or Rs 3,400 upside.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)