Commodity Radar: Gold Stays Steady at Rs 1.5 Lakh Support as NFP Data Signals Potential Breakout, Sparking Buy-on-Dips Strategy.

Gold prices have recently displayed a sideways consolidation, trading at around Rs 1,50,400 after experiencing a minor corrective phase. With June gold futures dropping by Rs 1,260, or 0.8%, to a low of Rs 1,50,093, uncertainty persists due to ongoing inflation concerns and stagnation in the Iran-US negotiations. Global cues have also been unfavorable, as COMEX gold prices fell by $25.70, or 0.56%, to $4,603.90 per ounce. As noted by Jateen Trivedi, Vice President of Research Analysis at LKP Securities, gold is attempting a stabilization near key support levels, and the upcoming US Nonfarm Payrolls (NFP) and unemployment data could significantly impact market direction.

The current market structure for gold suggests a potential base formation with cautious recovery. Immediate support levels reside between Rs 1,50,000 and Rs 1,50,200, while major support sits at Rs 1,48,000. Resistance levels are marked at Rs 1,51,200 and Rs 1,53,500. Keeping the gold price above Rs 1,50,000 may help maintain the recovery outlook. Key momentum indicators such as the Relative Strength Index (RSI) show weak momentum, currently around the 40-41 range, yet it is stabilizing from oversold conditions. This indicates a potential for price rebounds, rather than further declines.

Trivedi highlights several technical indicators to monitor closely, including Bollinger Bands, moving averages, and the MACD. The price action near the Bollinger Bands suggests a contraction in volatility, typically leading to a reversion towards the upper band, which is between Rs 1,52,500 and Rs 1,53,500. For trading strategy, a buy-on-dips approach is recommended within the Rs 1,50,000 to Rs 1,50,200 range, alongside a stop loss at Rs 1,48,000 on a closing basis, targeting the Rs 1,53,500 resistance. However, traders should remain cautious, ensuring they stay updated with fluctuating currency dynamics, which significantly impact gold’s trajectory.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)