immediate resistance is identified near Rs 142,000-145,000, aligning with the middle
Bollinger Band and a prior support area. (AI image)
Gold price forecast for today: Gold is currently experiencing significant selling
pressure, a trend expected to persist this week due to ongoing global tensions, according to Manav Modi, Senior
Analyst, Commodity Research at Motilal Oswal Financial Services Ltd.Gold prices have recently plummeted, recording their weakest performance in years. This downturn
is attributed to escalating inflation worries and anticipation of extended periods of high interest rates, which
have overshadowed gold’s traditional safe-haven appeal. Furthermore, intensifying conflict between the US, Israel,
and Iran has driven crude oil prices past $100, sparking concerns about persistent energy-induced inflation. Central banks globally have adopted a prudent approach; the Federal
Reserve has kept rates unchanged while highlighting inflation risks, and institutions such as the RBA have raised
rates. The strengthening US dollar and increasing bond yields have exerted additional downward pressure on gold.
Although temporary stability emerged from lower oil prices, market sentiment has moved away from anticipating rate
cuts, thereby restricting gold’s potential gains amidst ongoing geopolitical instability.This week, attention will be drawn to the Preliminary PMI reports
from key global economies. Technically, gold has weakened considerably following a sharp break from its recent
consolidation phase. Prices have dropped below the middle Bollinger Band (20-period Simple Moving Average),
signaling a loss of upward momentum, and are now nearing the lower band, which implies greater potential for
downward movement. The recent price behavior mirrors a distribution top, succeeded by a breakdown, affirming a
bearish outlook in the short term.The immediate resistance level
for gold is identified around Rs 142,000-145,000, coinciding with the middle Bollinger Band and a previous support
area. A more significant resistance stands at Rs 150,000, a point from which prices previously faced
multiple rejections. Conversely, crucial support is situated near Rs 136,000; a definitive breach below this could
extend the decline towards Rs 130,000 -128,000.The increased
trading volume accompanying the price drop suggests intense selling activity. Unless gold prices swiftly recover
above Rs 145,000, the prevailing market sentiment for the week will likely favor selling into rallies.(Disclaimer: Expert recommendations and perspectives on the stock
market, other asset categories, or personal finance guidance are solely their own. These viewpoints do not
reflect the stance of The Times of India.)