Gold Prices Eye 160,000 Rupees as Hurdle Approaches
Gold prices are expected to continue their upward trend, despite some potential short-term consolidation. According to Manav Modi, Senior Analyst at Commodity Research at Motilal Oswal Financial Services Ltd., gold's weekly bias remains bullish as long as it holds above Rs 152,000.
The immediate hurdle for gold is the range of Rs 157,600-158,000, and a sustained move above this region could open the way towards Rs 160,000. However, failure to break higher may trigger some profit-taking.
On the downside, immediate support is placed at Rs 152,000-153,000, followed by the important Rs 147,000 zone. The recent swing from approximately Rs 139,000 to Rs 158,000 has identified key Fibonacci retracement levels around Rs 153,500, Rs 150,700, Rs 148,500, and Rs 146,000.
The gold price ended the 10-17 August period on a firm note, with prices holding above $4,300/oz after briefly climbing toward $4,400. Softer US inflation and labor-market data reduced expectations of an immediate Federal Reserve rate hike, which has been reinforced by markets now seeing only around a one-in-three probability of a September hike.