Commodity Radar: How to trade gold ahead of the Trump-Putin meeting on August 15?

Gold prices slipped sharply on Monday in the opening trade, falling by Rs 900 or 1% per 10 gram, tracking movement in the international markets. The traders booked profit ahead of the crucial meeting between US President Donald Trump and Russian President Vladimir Putin scheduled on August 15 in Alaska. A resolution to Russia’s ongoing war with Ukraine could dampen the safe haven appeal of the yellow, triggering profit taking.

Gold’s October contracts were trading at Rs 1,00,958, down from last week’s all-time high of Rs 1,02,250. On the COMEX, the fall was even sharper as this bullion metal fell 1.5% to $3,438.40 per troy ounce.

Commenting on the current trends, Jateen Trivedi, Vice President – Commodity Research Cat LKP Securities said that gold has been showing strength over the past couple of weeks as softer US non-farm payroll data and higher unemployment figures signaled a potential September rate cut by the Federal Reserve. Additionally, fresh tariff measures by Trump have increased safe-haven demand, he said.

Trivedi sees the upcoming Trump–Putin meeting on August 15 as an important event as a resolution to the Russia–Ukraine conflict could trigger profit booking in gold.

Among the domestic factors, rupee weakness against the dollar amid the ongoing tariff uncertainty may lend additional support to domestic gold prices.

Check these 5 technical indicators before making a trade:

1) Key support & resistance

Gold continued its positive momentum last week, closing above the crucial Rs 1,01,700 zone. On the upside, immediate resistance is seen at Rs 1,02,700, followed by Rs 1,03,200. On the downside, strong support lies at Rs 1,01,200 and Rs 1,00,500. A sustained close above Rs 1,02,700 could open the way toward Rs 1,03,500 in the near term.

2) RSI

The RSI (14) is currently at 64.70, indicating bullish momentum without yet being in overbought territory. This suggests there is room for further upside before profit booking pressure intensifies.

3) Bollinger Bands

Price action is trading near the upper Bollinger band, reflecting strong buying interest. However, being close to the upper band also hints at possible short-term consolidation if profit booking emerges.

4) Moving averages

The short-term EMA (8) is trading above the medium-term EMA (21), confirming bullish crossover and supporting a positive bias for the week ahead.

5) MACD

MACD is in the positive territory and widening, indicating strong bullish momentum and supporting further upside potential.

Gold trading strategy

The overall setup remains bullish, said Trivedi, recommending a buy on dips near Rs 1,01,200 with a stop loss at Rs 1,00,450 on a closing basis.

Targets for the week are Rs 1,02,000 and Rs 1,02,500. In Trivedi’s view, any sustained move above Rs 1,03,200 could see an extended rally toward Rs 1,03,500.

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