Gold price prediction today: What's the gold rate outlook for July 18, 2025; does a 'buy on dip' strategy make sense?
Gold price prediction today: Gold prices have been somewhat stable in the last few days, with safe haven assets being in focus even as global economic uncertainty wanes despite US President Donald Trump's tariff policies.
A strong dollar has capped gains in gold. What's the outlook for gold prices and what strategy should investors adopt in the current scenario? Here's the analysis from Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities:
Gold prices have shown resilience around key support levels, with the MCX Gold August Futures currently trading around ₹97,480. The underlying tone remains cautiously optimistic, supported by a bounce from critical moving average confluence.
With momentum indicators showing signs of stabilization, the intraday bias shifts towards a Buy on Dip strategy near ₹97,350, with downside risk capped around ₹96,800.
Technical Setup:
1. EMA Alignment Signals Support: The 8-period EMA stands at ₹97,450, while the 21-period EMA is at ₹97,350. The price is currently testing the 21-EMA support, creating a favorable entry zone around ₹97,350. This confluence of moving averages provides a strong foundation for potential upward momentum.
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2. Bollinger Bands Indicate Consolidation: The Bollinger Bands show price action consolidating within the bands, with the lower band providing support near the ₹97,350 zone. This tight range suggests potential volatility expansion, favoring a breakout scenario once the accumulation phase completes.
3. Pivot Point Perspective: Previous day's pivot points reveal strong support confluence around the ₹97,350 level.
The price structure shows respect for these technical levels, with multiple touches confirming the zone's significance for intraday positioning.
4. RSI (14) Reading: The Relative Strength Index is currently in neutral territory, suggesting room for upward movement without immediate overbought concerns. This positioning supports the buy-on-dip thesis as momentum can expand in either direction.
5. MACD Momentum: The MACD indicator shows potential bullish divergence forming, with the histogram suggesting underlying strength building.
This technical pattern often precedes renewed upward momentum from support zones.
6. Price Structure and Volume: Recent price action shows strong buying interest near the ₹97,350 support level, with volume accumulation suggesting institutional participation. The price closing above key congestion zones confirms sustained demand at these levels.
Conclusion:
Gold intraday bias remains constructive on pullbacks. Traders can adopt a Buy on Dip strategy near the ₹97,350 mark, placing a protective stop-loss at ₹96,800. Upside targets for the session could be ₹97,800 and ₹98,200, provided the global sentiment remains supportive and prices hold above the 21-period EMA confluence.
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(AP) NSA NSA (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 21, 2025, 12:00 IST News agency-feeds Chinese investors snap up stocks on hopes for end to price wars, overcapacity Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
