MCX Gold Technical Outlook: Constructive with a Buy on Dips Strategy Favored

The overall technical outlook for MCX Gold remains constructive as price action continues to form a sequence of higher highs and higher lows. (AI image)

Gold price prediction today: Gold prices - MCX Gold August futures - are seeing a positive bias and a buy on dips strategy is favoured, says Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities. MCX Gold August futures continue to maintain a positive undertone, trading near Rs 1,45,350 after extending gains from the recent corrective phase. The overall technical structure indicates that the recent recovery is backed by improving momentum indicators and sustained buying interest above key moving averages. Despite prices approaching the upper Bollinger Band, the trend remains constructive, suggesting that any intraday decline is likely to attract fresh buying rather than aggressive selling. Traders may therefore adopt a buy-on-dips strategy in the Rs 1,45,200–Rs 1,45,400 zone, while maintaining a protective stop-loss below Rs 1,44,000. From a moving average perspective, the 8-period EMA continues to trade above the 21-period EMA, confirming that short-term momentum remains firmly in favour of the bulls. The widening gap between the two averages reflects strengthening buying momentum and indicates that the prevailing trend continues to remain positive. As long as prices hold above both moving averages, the probability of further upside remains favourable. The Bollinger Bands also support the bullish outlook. Gold is currently trading close to the upper Bollinger Band, highlighting sustained buying pressure. Although prices may witness minor profit booking after the recent rally, any retracement towards the middle Bollinger Band is expected to provide a fresh buying opportunity. A decisive breakout above the recent swing high could trigger another round of momentum buying. The previous day's Pivot Point analysis also strengthens the positive bias. Gold is trading comfortably above the pivot support as well as the Central Pivot Range (CPR), indicating that buyers continue to dominate the market. Holding above these support levels keeps the short-term trend intact and increases the possibility of prices testing higher resistance zones during the session. Momentum oscillators continue to favour the bulls. The Relative Strength Index (RSI-14) is hovering around 66, reflecting healthy bullish momentum without entering an extreme overbought territory. This suggests that the market still has room for additional upside before exhaustion signals emerge. Meanwhile, the MACD remains above the signal line with positive histogram bars, confirming that upside momentum continues to strengthen and supporting the continuation of the prevailing uptrend.

Gold Intraday Trading Strategy

Strategy: Buy on Dips

Entry Zone: Rs 1,45,200 – Rs 1,45,400

Stop-Loss: Below Rs 1,44,000

Target 1: Rs 1,46,200

Target 2: Rs 1,46,700

Overall view The overall technical outlook for MCX Gold remains constructive as price action continues to form a sequence of higher highs and higher lows. The bullish alignment of the EMAs, positive MACD crossover, supportive RSI reading, and sustained trade above the previous day's pivot levels indicate that the broader trend remains upward. While intermittent profit booking cannot be ruled out due to the recent advance, the overall structure favours buying on declines rather than chasing prices at higher levels. As long as Gold sustains above the crucial support of Rs 1,44,000, traders should continue to maintain a positive bias. A sustained move above Rs 1,45,500 is likely to encourage fresh buying interest and could drive prices towards the Rs 1,46,200–Rs 1,46,700 zone during the intraday session.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)