MCX Gold futures trade above ₹1 lakh per 10 gram: Will the rally continue or signal a reversal? Check key technical levels

Market recap (as of 5:00 pm)

• Gold 5 Aug Futures: ₹1,00,447/ 10 gram (▲ 0.1%)
• Silver 5 Sept Futures: ₹1,16,423/ 1 kg (▲ 0.6%)
• Crude Oil 19 Aug Futures: ₹5,624/ 1 BBL (▼ 0.4%)

Technical view

Gold prices began Wednesday’s session on a positive note and consolidated their gains at higher levels. It has formed three consecutive bullish candles on the daily chart, following a rebound from the crucial support zone near the 21-day exponential moving average (EMA). However, it has now entered a key resistance area around the ₹1,06,000 mark. A decisive close above this level could signal a continuation of the bullish momentum. Conversely, a rejection from this zone, especially if confirmed by a bearish candlestick, may indicate a potential reversal.

Silver prices extended the bullish momentum for the sixth session in a row and is trading above the previous session’s high. After confirming the bullish hammer from the crucial support zone of ₹1,11,000 and has jumped nearly 3%.

Both in the short and long-term, Silver’s trend remains bullish but the risk-reward in the short-term for the bullish trend turned unfavourable. Unless Silver slips below the crucial swing support zone of ₹1,14,250, the trend may remain bullish.

Crude prices extended the consolidation for the fifth session in a row, trading in the range of ₹5,800 and ₹5,560. Within this range the trend may remain sideways and a breakout or breakdown will provide further directional clues.

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