Technically, the recent recovery from the INR 157,000-158,000 region has helped stabilize prices. (Amnesty International image)
Gold price forecast today: Momentum in gold prices remains weak, and markets will track developments between the US and Iran for signals, says Manav Modi, senior commodity research analyst at Motilal Oswal Financial Services Limited.Gold traded under sustained pressure during the week on the hourly time frame, extending its corrective phase after failing to sustain its gains above the Rs 166,000-167,000 region. The broader trend remains limited to slightly bearish in the short term, with prices trading consistently below the midline of the Bollinger band near Rs 160,600. Repeated rejections around the middle band indicate that sellers continue to control the rallies, while buyers are mainly active near the lower Bollinger Band support.Technically, the recent recovery from the INR 157,000-158,000 region has helped stabilize prices, but momentum remains weak as gold struggles to maintain a level above INR 160,000. The Bollinger Bands have narrowed significantly, indicating volatility compression and the possibility of a larger directional movement in the coming sessions. A decisive close above INR 160,600-161,400, which coincides with the middle and upper Bollinger band resistance set, will be required to confirm an upside breakout and open the way towards INR 162,500 and INR 164,000.
On the downside, immediate support is placed at Rs 159,000 followed by the recent lower swing zone near Rs 157,500. A break below this support range could expose INR 156,000 levels. Overall, the market is still in consolidation mode, as traders are closely monitoring whether prices can reclaim the Bollinger band or continue the prevailing corrective trend.Throughout the entire week, markets weighed the ongoing ceasefire negotiations between the United States and Iran against rising concerns about inflation and expectations of monetary policy tightening. While hopes for a diplomatic solution buoyed sentiments, unresolved issues and escalating Israeli military operations in Lebanon kept geopolitical risks high. Rising crude oil prices continued to raise concerns about inflation, boosting US dollar and Treasury yields while capping gold’s upside.
Investors are now awaiting key PMI data, US labor market indicators and the Reserve Bank of India’s policy decision for further direction in the precious metals markets.(Disclaimer: Recommendations, opinions regarding stock market, other asset classes or personal finance management tips provided by experts are their own. These opinions do not represent the views of The Times Of India.)