Gold and silver price prediction : Gold prices have dipped sharply in the last few days while silver price s are showing strength. Even as some geopolitical tensions around the world weigh, there are signs of the dollar gaining favour. In such a scenario, what is the outlook for gold and silver prices? Should you buy or sell gold, and what are the gold and silver price levels you should watch out for? Abhilash Koikkara, Head - Forex & Commodities, Nuvama Professional Clients Group shares his views:
MCX Gold
Gold prices witnessed a sharp 5% decline last week, bringing the precious metal down to a critical support level near ₹92,000. This level holds significant technical importance, and as long as it remains unbroken, there is a potential for a rebound.
If the support holds, a retracement is likely, targeting at least the 50% Fibonacci level of the recent fall from ₹97,500 to ₹92,400. This places the retracement target around ₹95,000 followed by 61.8% retracement which comes to ₹95,500. Such a move would be considered a technical pullback, potentially offering short-term buying opportunities.
However, the situation remains fragile. A decisive break below ₹92,000 could negate the possibility of recovery and open the door to further downside momentum. In that case, increased selling pressure could drive gold prices lower, possibly testing the ₹90,000 mark in the coming sessions.
Traders should closely monitor price action around this support zone, as it will likely dictate the short-term trend. While fundamentals such as inflation concerns or geopolitical tensions can influence gold, technical levels like these often act as key decision points for market participants. Overall, ₹92,000 is a make-or-break level for gold, and the market’s behaviour around this point will be crucial in determining its next move.
MCX Silver
Silver prices have been exhibiting a positive formation in recent weeks, indicating underlying strength in the trend. However, during the last week, the metal entered a consolidation phase, trading within a narrow range with key resistance at ₹97,500 and support at ₹95,300.
This range-bound movement reflects a temporary pause in momentum as the market awaits a breakout in either direction. A decisive move above the ₹97,500 resistance level could trigger a fresh wave of buying interest, paving the way for a rally towards the psychologically significant ₹1,00,000 mark.
Sustained strength beyond that could further extend gains toward ₹1,05,000 in the near term, reinforcing the bullish outlook. On the other hand, if silver fails to break above resistance and instead slips below the ₹95,300 support level, it may attract renewed selling pressure. In such a scenario, prices could decline sharply and potentially revisit the ₹92,000 zone, where buyers might look to re-enter.
Therefore, the current price band between ₹95,300 and ₹97,500 acts as a critical decision-making zone. Traders should remain alert and wait for a clear breakout or breakdown before initiating fresh positions. The direction of the next significant move in silver will largely depend on how prices behave around these levels.
MCX Gold
Gold prices witnessed a sharp 5% decline last week, bringing the precious metal down to a critical support level near ₹92,000. This level holds significant technical importance, and as long as it remains unbroken, there is a potential for a rebound.
If the support holds, a retracement is likely, targeting at least the 50% Fibonacci level of the recent fall from ₹97,500 to ₹92,400. This places the retracement target around ₹95,000 followed by 61.8% retracement which comes to ₹95,500. Such a move would be considered a technical pullback, potentially offering short-term buying opportunities.
However, the situation remains fragile. A decisive break below ₹92,000 could negate the possibility of recovery and open the door to further downside momentum. In that case, increased selling pressure could drive gold prices lower, possibly testing the ₹90,000 mark in the coming sessions.
Traders should closely monitor price action around this support zone, as it will likely dictate the short-term trend. While fundamentals such as inflation concerns or geopolitical tensions can influence gold, technical levels like these often act as key decision points for market participants. Overall, ₹92,000 is a make-or-break level for gold, and the market’s behaviour around this point will be crucial in determining its next move.
- CMP: Rs 93,400
- Target 1: Rs 95,000
- Target 2: Rs 95,500
- Stop Loss: Rs 92,000
MCX Silver
Silver prices have been exhibiting a positive formation in recent weeks, indicating underlying strength in the trend. However, during the last week, the metal entered a consolidation phase, trading within a narrow range with key resistance at ₹97,500 and support at ₹95,300.
This range-bound movement reflects a temporary pause in momentum as the market awaits a breakout in either direction. A decisive move above the ₹97,500 resistance level could trigger a fresh wave of buying interest, paving the way for a rally towards the psychologically significant ₹1,00,000 mark.
Sustained strength beyond that could further extend gains toward ₹1,05,000 in the near term, reinforcing the bullish outlook. On the other hand, if silver fails to break above resistance and instead slips below the ₹95,300 support level, it may attract renewed selling pressure. In such a scenario, prices could decline sharply and potentially revisit the ₹92,000 zone, where buyers might look to re-enter.
Therefore, the current price band between ₹95,300 and ₹97,500 acts as a critical decision-making zone. Traders should remain alert and wait for a clear breakout or breakdown before initiating fresh positions. The direction of the next significant move in silver will largely depend on how prices behave around these levels.
- CMP: Rs 96,700
- Target 1: Rs 1,00,000
- Target 2: Rs 1,05,000
- Stop Loss: Rs 95,300
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