Gold prices likely to trade sideways with downward bias, says analyst
Gold enters the week near Rs 138,500 following an October correction, according to a Motilal Oswal Financial Services analyst.
Gold prices are likely to continue trading sideways with a downward bias, according to Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, as reported by The Times of India.
The metal entered the week near Rs 138,500 after an October correction. Prices have declined from above Rs 151,000 earlier in the month and are currently trading below the 20-period average of approximately Rs 140,660, which indicates continued selling pressure.
Immediate support for gold is placed around Rs 137,400–138,000, followed by Rs 135,000–136,000. A sustained break below that zone could expose levels between Rs 132,000 and Rs 133,000.
On the upside, the first important hurdle is Rs 140,500–141,000, followed by Rs 143,000–144,000. A sustained recovery above Rs 144,000 would be required to improve the short-term structure and could lead towards Rs 146,000–147,000.
The broader macro environment remains challenging due to liquidity adjustments across global markets. High US Treasury yields near 5.5 per cent also present a headwind by increasing the opportunity cost for gold investors.
Geopolitical uncertainty regarding US–Iran relations and the Middle East provides an underlying floor for prices. Additionally, dip buying from Chinese investors and strategic buyers appears to be emerging following the recent correction.
