For gold bulls, sky is the limit, but a hurdle lurks and could trigger profit booking. Here’s why

Gold prices fell by Rs 400 per 10 grams on Thursday as investors chose to book some gains following a stellar rally which saw yellow metal rates hit a fresh lifetime high of Rs 95,935 on the MCX in the preceding session. Given the current uncertainties, the outlook remains bullish for gold bulls with only the sky as the limit, say experts. However, they warn of strong hurdles that can impact the rally.

Commenting on gold’s current form, Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services, said that it seems like the sky’s the limit for gold bulls this year. Given the broader fundamentals, we continue to maintain a buy on dips scenario for bullion from a medium to long-term perspective,” he said.

Based on technical charts, Modi finds resistance around Rs 99,000, warning of profit booking. It could also be because of fundamental triggers like an agreement on tariffs with the US, he added.

Gold prices have climbed 25% or nearly Rs 18,000 per 10 grams so far in 2025.

On Thursday, yellow metal prices fell by Rs 422 amid profit booking to settle at Rs 95,239.

“Gold prices showed signs of fatigue, slipping below recent highs as Comex traded near $3,324 and MCX Gold near 95250 with losses of Rs 400, struggling to break past the key resistance at $3,350. On the downside, strong support lies between $3,280–$3,290, making this zone critical for maintaining bullish momentum. President Donald Trump opening another front with Federal Reserve Chair Jerome could add to the uncertainty.”The Federal Reserve’s cautious stance and President Trump’s insistence on lower rates add another layer of uncertainty, ensuring that gold remains a favoured hedge in these turbulent times,” Modi said.

The domestic gold prices will track prices on the COMEX and follow international prices. On Thursday, COMEX futures settled at %3,341.30 per troy ounce, falling by $5.10 or 0.15%.

Trivedi said that a decisive break below $3,290 could trigger further downside in COMEX, opening the door for a corrective move towards $3,150 in the near term.Should you buy gold/silver?Anuj Gupta, Head Commodity & Currency at HDFC Securities has a buy view on gold. This is what he recommends:

Buy June gold futures at Rs 94,950 with a stop loss of Rs 94,600 and target of Rs 95,520.

Buy Silver May futures at Rs 94,800 with a stop loss of Rs 94,080 and target price of Rs 95,980.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)