Gold and silver prices have recently shown signs of weakness, reflecting market corrections and profit booking. According to Abhilash Koikkara, Head of Forex & Commodities at Nuvama Professional Clients Group, this trend points to a potentially bearish short-term sentiment for both metals.
Gold Price Trends
Currently, MCX Gold has dropped significantly from its recent high of ₹1,31,000 to approximately ₹1,27,000. This decline comes after a strong rally, indicating that traders are securing profits. The recent price action has breached key support levels, which could lead to further downside movement.
Support and Resistance Levels
- Current Price: ₹1,27,000
- Next Support Level: ₹1,24,000
- Immediate Resistance: ₹1,31,000
If selling pressure persists, gold could further decline towards ₹1,24,000. A sustained drop below this level may set the stage for deeper declines. On the upside, any movement over ₹1,31,000 could signal a return of bullish momentum.
Factors Influencing Gold Prices
Global influences are crucial in understanding gold price movements. Factors such as US dollar fluctuations, bond yields, and geopolitical events play significant roles. Additionally, the Federal Reserve’s stance on interest rates continues to shape investor sentiment.
Despite current challenges, the long-term outlook for MCX Gold remains positive. It is often viewed as a hedge against inflation and economic uncertainty.
Gold Trading Strategy
- Current Market Price (CMP): ₹1,28,700
- Target Price: ₹1,24,000
- Stop Loss: ₹1,31,000
Silver Price Outlook
On the other hand, MCX Silver has also faced difficulties, falling below the $50 mark in COMEX trading, currently priced around $48. This decline is attributed to renewed selling pressure and profit booking, as market participants become increasingly cautious.
Price Corrections in Silver
MCX Silver has mirrored this trend by dropping from ₹1,70,000 to about ₹1,50,000. The outlook for silver appears negative, with expectations of a further decline towards the next support level of ₹1,42,000.
Resistance and Future Trends
- Current Price: ₹1,50,500
- Target Price: ₹1,42,000
- Stop Loss: ₹1,56,000
Any potential recovery is likely to encounter resistance at ₹1,56,000 due to the re-emergence of selling pressure. The ongoing trends in the global economy, inflation data, and industrial demand—especially in renewable energy and electronics—will be significant to silver prices moving forward.
While the short-term outlook for both gold and silver may seem bearish, their long-term fundamentals remain strong due to their unique roles in the market.
