Gold price prediction today: What's the gold rate outlook for May 30, 2025 - should you buy or sell?
Gold price prediction: The precious metal, which closed at ₹96500 levels, is likely to face immediate selling pressure as global cues turn negative. (AI image)
Gold price prediction today: Gold rate remains below its record peak, leaving investors uncertain about their trading decisions regarding the precious metal. Which price points should investors monitor?
Here's the analysis from Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities:
MCX Gold June 2025 contract is expected to open with a significant gap down following weakness in COMEX gold overnight.
The precious metal, which closed at ₹96500 levels, is likely to face immediate selling pressure as global cues turn negative. This presents a strategic opportunity for intraday traders to capitalize on any pullback rallies.
Current Technical Setup
Previous Close: ₹96500
Expected Opening Range: ₹96100-96200 (gap down of 300-400 points)
Key Technical Levels:
EMA 8: ₹96350 (now acting as immediate resistance)
EMA 21: ₹96100 (potential support turned resistance)
RSI: Expected to open below 40 (oversold bounce likely)
MACD: Bearish crossover confirmed with negative histogram
Bollinger Bands: Price likely to test middle band support
Sell-on-Rise Strategy: 96350-96400 Zone
Strategic Rationale:
The 96350-96400 zone represents a confluence of critical resistance factors:
1. EMA 8 Resistance: The 8-day moving average at 96350 will act as dynamic resistance
2. Gap Fill Resistance: Markets often struggle to fill gaps completely on first attempt
3. Previous Support Turned Resistance: Yesterday's support levels become today's resistance
4. Psychological Level: Round number resistance at 96400
Entry Parameters:
Primary Sell Zone: ₹96350-96400
Ideal Entry: ₹96375 (middle of the resistance zone)
Stop Loss: ₹96550 (above previous day's high)
Target 1: ₹96000 (psychological support)
Target 2: ₹95800 (next significant support)
Target 3: ₹95550 (extended target for swing traders)
Execution Strategy:
1. Wait for Gap Opening: Allow the market to digest the gap down
2. Monitor Recovery Attempt: Look for pullback rally toward resistance zone
3. Entry Confirmation:
Bearish reversal candlestick pattern (shooting star, doji, bearish engulfing)
RSI showing negative divergence near 50-55 levels
Volume declining on the recovery attempt
4. Risk Management: Trail stop loss to breakeven once Target 1 is achieved
Market Sentiment Analysis
The overnight weakness in COMEX gold reflects:
Dollar Strength: DXY showing resilience above key levels
Yield Pressure: 10-year Treasury yields rising, reducing gold's appeal
Risk Appetite: Improving equity markets reducing safe-haven demand
Technical Breakdown: Key support levels breached in international markets
Risk Factors to Monitor
Geopolitical Developments: Any sudden safe-haven demand
Dollar Reversal: Unexpected USD weakness
Economic Data: US economic releases affecting gold sentiment
COMEX Recovery: Any sharp recovery in international gold prices
Alternative Scenario
If gold manages to close the gap and sustain above ₹96500, it would negate the bearish thesis. In such case, traders should:
Exit short positions immediately
Reassess the technical picture
Wait for fresh setup
Conclusion
The expected gap down in MCX gold creates an ideal setup for sell-on-rise strategy. The 96350-96400 resistance zone offers a favorable risk-reward ratio for intraday traders. However, strict adherence to stop losses is crucial given the volatile nature of precious metals.
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