The recent move in gold has been characterized as a retest of previously supportive zones, rather than a downturn caused by fundamentals. Domestic and global charts continue to trade within a broader bullish pattern, indicating that the broader trend remains upward.Analysts note that while interim dips appear sharp, the underlying situation for Indian gold prices remains constructive as long as key support points hold.
Sharing his outlook, Enrich Money CEO Ponmudi R said the recent correction is in a strong trend. According to him, “Gold prices witnessed a healthy correction this week at both COMEX and MCX, but the broader trend remains firmly up.”
Noting that MCX gold was supported near the Rs 1,21,800 zone, he added that “the October-November move on MCX also shows a clear curved pattern, indicating a cyclical pullback within a strong uptrend rather than any structural weakness.” continue to trade within an Ascending Broadening Wedge, a pattern where prices continue to rise while volatility increases, indicating that the broader trend remains bullish, even though interim dips may appear sharp.”
For the Indian market, the analyst highlighted key levels to watch. On MCX, “Rs 1,21,800 remains the first major support,” below which the next cushions are at “Rs 1,19,250 – Rs 1,17,600.” The resistance for the coming sessions is estimated at “Rs 1,24,000 – Rs 1,24,500.”
As long as gold remains above its immediate support, Ponmudi R says the bullish framework remains intact. If stability emerges around the current zone, he added that gold could bounce back to Rs 1,25,500, Rs 1,27,200 and Rs 1,28,800 on MCX.
A breakout above these levels could potentially mark the next phase of the rally, with the report noting that this could push Indian prices to “Rs 1,30,000+ in India, confirming a new momentum phase.”
On the other hand, he warned that if MCX gold falls below its key support point, “the market could enter a short-term cool-down phase,” with the next support resting at “Rs 1,20,800 – Rs 1,19,500 domestically.” However, these still lie within the broader technical structure unless further disruption occurs.
Despite the recent dip, the medium-term tone remains supportive. Ponmudi R stated that “the medium-term outlook for gold remains positive,” citing several factors such as global currency trends, central bank accumulation, geopolitical tensions and inflation expectations.
He concluded that “these factors reinforce the view that gold is in a constructive phase and maintains a bullish bias as long as key support levels hold.”
Also read: Gold costs Rs 5,000/10 gram, silver tanks Rs 8,700/kg. Three reasons for yellow metal’s sharpest intraday decline
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)
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