Gold prices likely to trade sideways with downward bias, says analyst
Manav Modi of Motilal Oswal Financial Services Ltd expects gold to face selling pressure despite geopolitical uncertainty.
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 following a correction in October. 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.
Modi noted that immediate support for gold is placed around Rs 137,400–138,000, with further support at 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. 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 analysis suggests that while geopolitical uncertainty and dip buying from Chinese investors provide support, high US Treasury yields and liquidity adjustments in global markets remain headwinds. The Federal Reserve has kept rates unchanged at 3.75%–4.00%.
Market attention is now shifting towards the US midterm elections and upcoming labour-market data to determine future policy moves and fiscal expectations.
