Gold faces corrective pressure as prices slip toward key support levels
Senior analyst Manav Modi says gold is in a corrective phase, with prices falling below the 20-day average and eyeing support around Rs 152,000.
According to Manav Modi, senior analyst at Motilal Oswal Financial Services Ltd., gold entered a corrective phase after strong selling from the Rs 163,000-164,000 range, pushing prices below the 20-day average to about Rs 152,300. The broader trend stays confined within a range, but the recent rejection of higher levels makes the Rs 160,000-163,500 zone a critical supply area. For a bullish reversal, gold must reclaim the Rs 156,300-157,000 band; otherwise, it could test support near Rs 149,000.
Bollinger Band analysis shows the price moving toward the lower band, reinforcing downside pressure. Fibonacci retracements place the 50% level at Rs 152,000, which now serves as a pivotal point for the week’s direction.
Why it matters
Gold’s price movement influences investors and economies reliant on bullion as a safe-haven asset.
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