Commodity Radar: Gold jumps Rs 1,870/10g to new lifetime high. 4 reasons why traders may see another Rs 1,300 upside

Domestic gold prices hit yet another lifetime high of Rs 1,35,496 per 10 gram on Monday, surging sharply by around Rs 1,870 or 1.4% over the last closing price. While the trade remained favourable amid growing haven and investment appeal in bullion, rates in India were further supported by rupee weakness.

The rupee weakened 0.2% to 90.6475 against the U.S. dollar today, breaching its previous all-time low of 90.55 hit on December 12.

Moreover, the yellow metal prices on the COMEX were 1% higher at $4,372.90 per troy ounce.

Jateen Trivedi, Vice President – Commodity Research at LKP Securities, said that the near-term indicators will be key US macroeconomic data including non-farm payroll data and core PCE Price Index. “Any signs of cooling inflation or labour market softening could reinforce expectations of monetary easing, which would remain supportive for bullion prices globally,” he added.

INR hitting new lows against the US dollar on a consistent basis is providing support to the bullion rally. Even if COMEX gold witnesses intermittent weakness, rupee depreciation is likely to cushion downside risks in the domestic market, Trivedi said.

Here are 5 technical indicators to watch out for?

1) Key support & resistance

Gold continues to trade in a strong upward structure, registering fresh higher highs after breaking out above the previous consolidation range near Rs 1,32,000–Rs 1,33,000. The recent breakout candle confirms renewed buying interest, with price sustaining well above its short- and medium-term amayanverages. The immediate upside momentum remains intact as long as price holds above the breakout base.Immediate support Zone is Rs 1,33,500 while the major support level is seen at Rs 1,31,000. Immediate resistance is seen at Rs 1,35,500 with next resistance level seen at Rs 1,36,500.

Any dip toward the Rs 1,33,500 area is expected to attract fresh buying, while a close below Rs 1,31,000 would weaken the short-term bullish setup.

2) RSI (14)

The daily RSI is placed near 73–74, indicating strong bullish momentum. While the oscillator is in the higher zone, it has not yet shown any clear negative divergence. This suggests momentum is strong, though short-term consolidation or mild pullbacks cannot be ruled out at elevated levels.

3) Bollinger Bands

Price is trading near the upper Bollinger band, reflecting strong trend continuation. Band expansion is visible, which supports the view of sustained volatility on the upside. As long as price remains above the middle band, the broader bias remains positive, with dips expected to be shallow.

3) Moving averages

— EMA 8: Acting as immediate dynamic support near Rs 1,33,800

— EMA 21: Positioned near Rs 1,31,800

Both EMAs are rising sharply, and the price is comfortably placed above them, reinforcing a buy-on-dips structure. The EMA 21 zone aligns closely with the key support area, strengthening its importance.

4) MACD

MACD remains in positive territory, with the signal line above the zero line and momentum improving post-breakout. No bearish crossover is visible at this stage, indicating that the ongoing uptrend remains intact.

Gold trading strategy

Trivedi recommends a buy on dips strategy with the buy zone at Rs 1,33,500. He has placed the stop loss below Rs 1,31,000 with targets at Rs 1,35,500/Rs 1,36,500.

“Overall, the trend remains firmly bullish, and dips are expected to be used as accumulation opportunities, supported by both technical strength and currency tailwinds,” the LKP analyst said.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)