Gold price prediction today: Gold prices are showing some bearish bias, and a period of short-term consolidation is likely, says Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities. Here is his strategy for gold investors:Gold futures on MCX traded mildly lower near โน1,26,650 as profit booking emerged after the recent rally. The metal faced resistance near โน1,27,200, with the technical setup showing early signs of exhaustion. A combination of weakening RSI and narrowing Bollinger Bands suggests that upside momentum is fading, and a short-term correction could be on the cards.Technical Setup:Moving Averages (EMA 8 & EMA 21): The short-term EMA 8 has turned flat and is approaching the 21 EMA, indicating a loss of momentum. A crossover on the downside may confirm a near-term shift in trend. Immediate resistance remains near โน1,27,200, with support seen at โน1,26,100. Bollinger Bands: Gold prices have retreated from the upper Bollinger band, signaling that the bullish phase is losing strength. The mid-band near โน1,26,100 is acting as interim support, and a break below this level may trigger further selling pressure. Pivot Points (Previous Day):
- Resistance levels: โน1,27,200 โ โน1,27,650
- Support levels: โน1,26,100 โ โน1,25,600 Failure to sustain above the pivot resistance confirms weakness for the session.
- RSI Indicator: The RSI has dropped to 45, down from the overbought region, indicating weakening buying momentum and increasing potential for downside continuation.
- MACD: The MACD histogram is narrowing after a bullish run, and the MACD line is nearing the signal line โ a potential indication of bearish crossover in the short term.
Intraday View:
- Strategy: Sell on rise
- Entry Zone: โน1,27,000 โ โน1,27,200
- Stop-Loss: โน1,27,650
- Targets: โน1,26,100 and โน1,25,600
- Bias: Bearish below โน1,27,200; sentiment weakens further if price sustains below โน1,26,100.
Conclusion:Goldโs intraday technical setup points toward short-term consolidation with a bearish bias. The RSIโs decline, flattening EMAs, and narrowing MACD histogram suggest fading upside momentum. Traders should look to sell on rise near โน1,27,000โโน1,27,200 with a stop-loss at โน1,27,650, targeting a move towards โน1,26,100โโน1,25,600. Sell on Rise | Resistance: โน1,27,200 | Support: โน1,26,100(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)