Precious metals posted strong gains last week, with gold and silver futures continuing their upward momentum in both international and domestic markets. Analysts now expect further advances, though they caution that short-term pullbacks are possible.
On the Multi Commodity Exchange (MCX), gold futures for October delivery rallied 5.1 per cent to settle at ₹1,62,438 per 10 grams. Silver futures for September gained 4.5 per cent to ₹2,46,597 per kilogram. In international markets, spot gold rose 5.2 per cent to $4,603 per troy ounce and silver climbed 6.6 per cent to $69 per ounce.
Gold futures: breakout above ₹1,55,000
Gold futures broke through the key resistance level of ₹1,55,000 in the middle of last week and extended the rally to touch a high of ₹1,62,680 on Friday. According to chart analysis, the upward momentum remains strong and the probability of further gains is high.
The next major resistance is at ₹1,70,000. However, analysts note that a minor dip to around ₹1,60,000 cannot be ruled out before the contract resumes its climb. If gold futures fall below the support at ₹1,60,000, the decline could extend to ₹1,55,000. As things stand, the contract is expected to reach ₹1,70,000 either from the current level of ₹1,62,438 or after a pullback to ₹1,60,000.
Silver futures: rebound from moving average support
Silver futures experienced a dip early last week but found strong support at ₹2,30,000 — a level where both the 21-day and 50-day moving averages converge. The contract rebounded from this support, broke above ₹2,40,000, and turned the outlook bullish.
Analysts expect silver to touch ₹2,60,000 in the near term. On the downside, the contract may find support at ₹2,40,000 if it declines from current levels. A break below that could lead to a deeper drop back to ₹2,30,000.
Trade strategies suggested by analysts
For gold futures, the suggested approach is to buy if the contract dips to ₹1,61,000, with a stop-loss at ₹1,59,000. Once the price reaches ₹1,67,000, the stop-loss can be tightened to ₹1,65,000, with profit booked at ₹1,70,000.
For silver futures, analysts recommend buying at ₹2,44,000, with a target of ₹2,60,000 and a stop-loss at ₹2,39,000.
Key takeaways
- Gold futures broke above ₹1,55,000 resistance and hit ₹1,62,680; next target is ₹1,70,000.
- Silver futures rebounded from support at ₹2,30,000 (where 21 and 50-day moving averages meet) and broke above ₹2,40,000.
- A minor dip to ₹1,60,000 in gold or ₹2,40,000 in silver is possible before further upside.
- Analysts expect silver to reach ₹2,60,000 in the near term.
For the latest pricing, check the live gold price.
Common questions
What is the current gold futures price on MCX?
Gold futures for October delivery were trading at ₹1,62,438 per 10 grams at Friday's close, up 5.1 per cent for the week.
What is the target for gold futures?
Analysts expect gold futures to rally to ₹1,70,000, either from current levels or after a dip to around ₹1,60,000.
Why did silver futures rebound?
Silver found strong support at ₹2,30,000, where its 21-day and 50-day moving averages coincide, and then broke above the ₹2,40,000 level, turning the outlook bullish.
This week's rally in precious metals comes amid continued investor interest in safe-haven assets. Traders should monitor support and resistance levels closely as the market evolves.