Gold Price Prediction for August 29, 2025: Why the ‘Buy on Dips’ Strategy Makes Sense
As of August 29, 2025, gold futures trading on the Multi Commodity Exchange (MCX) are holding steady near ₹1,02,150 per 10 grams, maintaining an upward momentum that encourages cautious optimism among investors. Experts suggest that adopting a ‘buy on dips’ strategy could be a prudent approach in the current market environment.
Current Market Overview
According to Jateen Trivedi, Vice President and Research Analyst for Commodity and Currency at LKP Securities, gold is showing continued strength, supported by favorable technical indicators. The gold price has remained buoyant with key moving averages and momentum indicators pointing toward sustained bullishness.
Technical Analysis Breakdown
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Moving Averages (EMA 8 & EMA 21):
The short-term exponential moving average (EMA 8) is currently above the longer-term EMA 21, indicating sustained bullish momentum. This alignment supports the view that the gold uptrend is intact as long as prices stay above ₹1,01,850. – Bollinger Bands:
Gold prices are trading close to the upper Bollinger Band, a signal of strength but also a cautionary sign that the commodity may be slightly overextended in the short term. A pullback towards the middle Bollinger Band could present a good entry point for buyers. -
Pivot Points (From Previous Trading Day):
Support levels are identified between ₹1,01,850 and ₹1,01,750, providing a safety net for potential dips. Resistance levels, meanwhile, are seen around ₹1,02,260 and ₹1,02,400, marking possible targets for intraday traders. -
Relative Strength Index (RSI):
The RSI stands at 68 — edging close to overbought territory (above 70) but not yet breaching it. This suggests bullish momentum is strong but warns that a minor correction or consolidation could take place before the uptrend continues. -
MACD (Moving Average Convergence Divergence):
The MACD line is above the signal line, accompanied by positive histogram bars, confirming sustained buying interest and reinforcing the bullish outlook.
Recommended Trading Strategy
Trivedi advises intraday traders and investors to consider buying gold on dips near the ₹1,01,850 to ₹1,01,900 zone. He recommends placing a strict stop-loss at ₹1,01,450 to manage downside risk effectively. For upside targets, traders can aim for an initial target of ₹1,02,260, followed by a secondary target of ₹1,02,400. The bullish bias remains intact as long as gold prices do not fall below ₹1,01,450. A break below this level could signal a potential weakening of the uptrend.
Why ‘Buy on Dips’ Makes Sense Now
In the current economic backdrop, characterized by global uncertainties and fluctuating currency markets, gold continues to be a preferred safe-haven asset. The ‘buy on dips’ strategy allows investors to capitalize on short-term price corrections within a longer-term upward trend. This approach helps mitigate risks by avoiding purchases at perceived peak levels while positioning to benefit from anticipated price recoveries.
Given the technical evidence showing a resilient gold price supported by multiple bullish indicators, investors who enter near support levels stand to gain as prices move toward resistance targets.
Disclaimer:
The views and recommendations in this analysis represent the opinions of market experts and do not constitute financial advice. Investors should consider their risk tolerance and perform due diligence before making investment decisions.
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Reported by the TOI Business Desk, August 29, 2025