MCX Gold December futures surged 0.4% to Rs 1,51,325 on Friday afternoon, breaking above the Rs 1,49,500 consolidation level that had stalled the rally earlier in the week. Trading volume jumped 12% to 3.5 lakh contracts, confirming the upward momentum. Jateen Trivedi, VP Research Analyst at LKP Securities, said the move signals a short‑term reversal, but cautioned that the metal remains near a critical resistance.
The next battleground is the Rs 1,51,500–1,51,700 zone. A rejection here could trigger profit booking, pushing prices toward the 1,50,000 target that sits at the 50‑EMA. Conversely, a sustained move above 1,51,700 would invalidate the sell‑on‑rise view and support a bullish bias. Gold futures in the U.S. have hovered close to $1,950, mirroring the Indian market’s resistance levels.
Technical data backs the rally. The 30‑minute chart shows a bullish MACD crossover with an expanding histogram, while the 8‑EMA and 21‑EMA have both been breached, confirming a short‑term upward trend. Open interest fell 8% from 7.2 million contracts, hinting that short covering may be fueling the rise rather than new long positions.
Traders can consider a sell‑on‑rise strategy with a stop‑loss at Rs 1,52,600 and a target at Rs 1,50,000. The next key event is the U.S. Fed meeting on Tuesday; a dovish tone could further lift gold as a safe‑haven. If the metal surges past 1,51,700, a new bullish stance targeting Rs 1,53,000 may take shape.