Gold Trading Strategy: Sell on Rise Amid Consolidation Phase
Commodity Radar: Sell gold on rise. 4 technical triggers to support the trade
The Economic TimesImage: The Economic Times
Gold prices have entered a consolidation phase, with June futures on the Multi Commodity Exchange (MCX) rising over ₹600 to breach the ₹1.5 lakh mark. Analysts suggest a 'sell-on-rise' strategy, anticipating further downside pressure unless key resistance levels are breached.
- 01Gold futures on MCX rose over ₹600 to surpass ₹1.5 lakh.
- 02The price has corrected nearly 26% from its all-time high of ₹2,04,000.
- 03Immediate resistance is at ₹1,50,500 while major support is at ₹1,47,500.
- 04Analysts recommend selling around ₹1,50,500 with a target of ₹1,47,500.
- 05Geopolitical factors and macroeconomic data are influencing gold's volatility.
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Gold prices have shown a slight increase, with June futures on the Multi Commodity Exchange (MCX) rising over ₹600 (0.4%) to breach the ₹1.5 lakh mark. However, the yellow metal has corrected nearly 26% from its all-time high of ₹2,04,000 due to persistent profit booking and concerns over rising energy prices linked to the Iran-Israel conflict, which may delay interest rate cuts. Jateen Trivedi, Vice President and Research Analyst at LKP Securities, notes that gold is in a pullback consolidation phase after a sharp rejection from highs above ₹1,54,000, stabilizing around ₹1,49,500. He emphasizes that the market structure indicates a 'sell-on-rise' opportunity unless resistance levels are decisively breached. Key resistance is identified at ₹1,50,500 to ₹1,51,000, while immediate support is at ₹1,48,500 and major support at ₹1,47,500. The analysis highlights that gold remains sensitive to macroeconomic and geopolitical triggers, with the potential for volatility but a bearish outlook prevailing unless prices rise above ₹1,51,000.
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Investors and traders in the gold market may need to adjust their strategies based on current price movements and geopolitical factors, potentially influencing their investment decisions.
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