Gold Trades Near Rs 1.55 Lakh: Buy, Hold Or Wait? Know What Experts Say

Gold and silver are currently trading in oversold territory, increasing the likelihood of a short-term technical rebound, say analysts.

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Gold and silver prices are trading at around Rs 1.55 lakh per 10 grams, even as investors assess the impact of a fragile Israel-Iran ceasefire, rising global inflation concerns and the possibility of further interest rate hikes by major central banks. Silver is trading at Rs 2.47 lakh per kg.

Renisha Chainani, head of research at Augmont, said both precious metals are currently trading in oversold territory, increasing the likelihood of a short-term technical rebound. In the international market, gold is holding near the key support zone of $4,300 per ounce, while silver is testing support around $66-$67 per ounce.

“Gold is currently trading at deeply oversold levels near the critical support zone of $4,300. A technical rebound of 3-4% is anticipated

from current levels, driven by bottom-fishing activity. However, a sustained break below this support would shift the near-term bias decisively lower,” Chainani said.

For domestic investors, gold has support around Rs 1.54 lakh per 10 grams and resistance near Rs 1.60 lakh. Silver is supported at Rs 2.40 lakh per kg, while resistance is seen around Rs 2.60 lakh per kg, she added.

Market participants are closely tracking upcoming US inflation data and comments from US Federal Reserve officials for clues on the future interest rate path. CME FedWatch data indicates that markets are assigning a more than 70% probability of a Fed rate hike by December.

Jateen Trivedi, vice-president (research analyst- commodity and currency) at LKP Securities, said gold prices remained largely range-bound in early trade, with MCX Gold hovering around Rs 1,54,700.

“Market focus has now shifted to the upcoming US inflation data due on Wednesday, which will be crucial in shaping expectations around future Federal Reserve policy. Investors will also closely watch comments from Fed Chair Kevin Warsh for clues on the interest rate outlook. For the near term, gold is expected to trade within a range of Rs 1,53,500-1,56,000,” Trivedi said.