Gold, silver price prediction: Why gold, silver are under pressure; check outlook

Gold and silver prices are expected to face pressure in the near future, warns Abhilash Koikkara, Head of Forex & Commodities at Nuvama Professional Clients Group. In his outlook, Koikkara notes that both MCX Gold and MCX Silver are likely to remain under pressure as the price structures continue forming lower highs and lower lows, signaling a bearish market sentiment. He suggests that selling pressure remains dominant in these metals, and further downside may emerge once the current consolidation phase concludes.

For MCX Gold, the near-term outlook indicates that prices may trade within a consolidation range. However, a decisive break from this range could trigger another round of selling. If the price drops below 148,000, it could serve as the first significant support level. If this level is breached and selling continues, the decline may extend toward the 145,000 zone.

On the upside, the crucial resistance level for MCX Gold stands at 159,000, and any sustained breach above this level could potentially weaken the bearish view and lead to a potential trend reversal.

Similarly, MCX Silver is also expected to face selling pressure in the coming days. Similar to gold, the overall technical setup indicates weakness for silver. The recent rise in US Treasury yields ahead of the Federal Reserve meeting on September 16 is a key factor influencing precious metals, as higher yields may reduce the attractiveness of non-yielding assets like silver. Traders should closely monitor the 230,000 and 248,000 levels as potential downside and resistance levels, respectively.

In conclusion, the technical setup favors a sell-on-rise approach for both MCX Gold and MCX Silver, with traders closely watching the identified support and resistance levels for potential price movements.