Gold Price Forecast: Insights on September 19, 2025 and the Rationale Behind a ‘Buy on Dips’ Strategy
Gold prices are showing signs of recovery, with recent technical analysis suggesting a bullish trend. According to Jateen Trivedi, Vice President of Research at LKP Securities, investors should consider a buy-on-dips strategy as gold futures on the Multi Commodity Exchange (MCX) hover around ₹1,09,340. With the market awaiting clarity on the U.S. Federal Reserve’s interest rate decisions, the outlook for gold remains cautiously optimistic.
Current Market Overview
Gold futures have stabilized after a period of volatility, trading at approximately ₹1,09,340 in early sessions. This stability comes as investors closely monitor global economic indicators and anticipate the U.S. Federal Reserve’s stance on interest rates. The technical analysis indicates that a buy-on-dips strategy could be beneficial, particularly near the ₹1,09,000 mark, with a stop-loss set at ₹1,08,650. The target for potential gains is projected at ₹1,10,200. This strategy reflects a growing confidence in gold’s ability to maintain upward momentum in the face of economic uncertainties.
Technical Indicators and Analysis
The technical setup for gold is showing promising signs. The Exponential Moving Averages (EMA) indicate that the EMA 8 is on the verge of crossing above the EMA 21, suggesting a potential return to bullish territory. Maintaining prices above ₹1,09,000 is crucial for sustaining this momentum. Additionally, the Bollinger Bands analysis reveals that gold is currently trading around the mid-band after testing the lower band in previous sessions. A bounce from these levels could reinforce dip-buying opportunities, with resistance noted near ₹1,10,250.
Other indicators, such as the Relative Strength Index (RSI), currently at 57, suggest recovering momentum, indicating room for further upside before approaching overbought conditions. The Moving Average Convergence Divergence (MACD) is flattening but remains close to the signal line, hinting at potential positive movement if buying interest continues above the support levels. The Average Directional Index (ADX) readings suggest moderate trend strength, indicating a consolidation phase with a bullish tilt if prices remain above ₹1,09,000.
Intraday Trading Strategy
For traders looking to capitalize on gold’s current trajectory, the recommended strategy is to buy on dips. The entry zone is identified between ₹1,09,000 and ₹1,09,050, with a stop-loss set at ₹1,08,650. The upside target is projected at ₹1,10,200. This strategy is predicated on maintaining a bullish bias as long as prices stay above ₹1,09,000. A breach below ₹1,08,650 could signal weakness in the market, prompting a reassessment of positions.
Overall, the intraday setup for gold indicates improving technical momentum, supported by various indicators. Traders are advised to look for opportunities to buy on dips while managing risk effectively.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
