Bullion Cues: Gold futures and silver futures could gain more
Traders can consider long positions
Precious metals experienced a notable surge last week. Gold and silver futures both demonstrated significant gains, with gold increasing 5.2% to $4,603 per ounce and silver rising 6.6% to $69 per ounce. In India, gold futures rose 5.1% to ₹1,62,438 per 10 grams, while silver futures climbed 4.5% to ₹2,46,597 per kilogram. This analysis delves into the developments surrounding gold and silver futures.
Gold futures (October) broke through the ₹1,55,000 barrier by mid-last week and continued its upward trajectory, reaching a peak of ₹1,62,680 on Friday. The upward momentum appears robust, suggesting a likelihood of further price increases. Currently, the closest resistance level stands at ₹1,70,000. Nonetheless, a temporary pullback to around ₹1,60,000 before resuming the ascent to ₹1,70,000 cannot be ruled out.
Should gold futures dip below the ₹1,60,000 support level, it could potentially extend the decline to ₹1,55,000. However, at present, gold futures are poised to rise to ₹1,70,000 either from the current price of ₹1,62,438 or after a temporary decline to ₹1,60,000. The recommended trading strategy involves purchasing gold futures (October) if the price falls to ₹1,61,000, with a stop-loss set at ₹1,59,000.
Once the contract ascends to ₹1,67,000, the stop-loss should be adjusted to ₹1,65,000, and profits should be realized upon reaching ₹1,70,000. Silver futures (September) encountered a slight downturn early in the week but found support at ₹2,30,000, marking an essential level where both the 21- and 50-day moving averages converge.
Following this support, silver futures rebounded, surging past the ₹2,40,000 mark, indicating a favorable outlook. We anticipate silver futures to reach ₹2,60,000 in the near future. Conversely, if the contract declines from its current level, it may find support at ₹2,40,000. If this support is breached, it could trigger a more substantial decline to ₹2,30,000.
The trading strategy for silver futures recommends buying at ₹2,44,000, with a target price of ₹2,60,000 and a stop-loss of ₹2,39,000.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
