Page 42 - Bullion World Volume 03 Issue 07 July 2022

Bullion World | Volume 5 | Issue 09 | September 2025

Gold’s Meteoric Rise: Technical

Outlook and What Lies Ahead

After Surging Past $3500

Mr Prathik Tambre
Senior Analyst – Precious Metals, Bullion World

In an extraordinary rally, gold has delivered more than $3,700-$3,800 range by year-end. This is consistent
a 33% return in the MCX market since the last India with earlier market reports forecasting further gains
Gold Conference in 2024, rocketing from ₹75,000 driven by central bank policies, continuing geopolitical
to ₹1,05,000 per 10 grams. With only nine months risks, and the growing demand from institutional
elapsed in 2025, this performance already outpaces investors.
previous calendar years’ gains by over 19%, setting
a bullish tone for the precious metal. On the global The ability of gold to maintain its bullish bias will
front, gold is currently trading at $3,477 per ounce as depend on its performance around key levels: clearing
of September 1, 2025, having decisively broken the and consolidating above $3,500 will open the pathway
critical $3,400 level in the last week of August. to this higher target zone, while a sustained drop below
$3,360 could signal a deeper correction phase.
This breach was largely fuelled by growing
expectations of a Federal Reserve rate cut in their Long-Term Outlook
upcoming September meeting combined with The much-discussed question of whether gold can
persistent geopolitical tensions, keeping investors touch the $4,000 mark continues to dominate investor
firmly anchored in safe-haven assets. The short-term sentiment. With prices already delivering over 30%
charts indicate that gold’s next immediate target is returns this calendar year, reaching $4,000 before
testing its previous all-time high near $3,495, with the year-end appears ambitious. However, the longer-term
psychological and technical hurdle of $3,500 looming outlook remains strong. As global uncertainties persist
large. and demand for safe-haven assets grows, gold prices
could comfortably move beyond $4,100 an ounce in
Technical Landscape and Near-Term Moves 2025. On the domestic front, this translates to levels
The upward momentum has been fuelled by a surge above ₹1,20,000 per 10 grams on the MCX. Rupee
in buying interest and short covering, pushing gold depreciation will in turn fuel MCX gold prices further.
higher in quick bursts. After reclaiming the $3,400 Whether gold achieves this historic milestone by the
zone, gold’s trajectory suggests it could push towards close of 2025 is something the market will reveal in
$3,550 in the very near term. This zone could act as due course.
a short-term resistance as traders take profits, and
liquidity is absorbed in the market. Should gold fail to In summary, gold’s technical charts reveal an asset
sustain above the $3,500 mark following this liquidity riding a powerful bullish wave, now bridging new
sweep, technical pullbacks could bring prices back to historical highs. Investors should monitor critical price
a demand zone around $3,360-$3,375 and Rs 100750 levels around $3,500 and $3,360 in the short-term
– Rs 101000 in MCX. This level aligns with previous to gauge market sentiment. The possibility of minor
consolidation phases and offers an important degree of corrections or pullbacks cannot be ruled out, but the
price stability before the next leg up. year-end target near $3,700-$3,800 remains well within
reach unless unexpected macroeconomic shifts occur.
Medium-Term Outlook Gold continues to shine brightly in 2025, rewarding
Despite these short-term fluctuations, the underlying those who read the fundamental signs well and remain
bullish trend remains firmly intact. Technical analysis vigilant to the changing market tides.
points to a sustained upward momentum targeting the

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