Bullion Cues: Bears retain control

Last week, precious metals faced a significant downturn. Gold, trading at $3,995.80 per ounce, declined by 4.1 per cent, while silver, at $53.90 per ounce, saw a steeper 5.4 per cent drop. In the local market, gold (₹1,42,024 per 10 grams) shed 4 per cent, whereas silver (₹1,95,719 per kilogram) plummeted by 7.3 per cent.

Precious metals futures experienced a decline throughout the week, dipping below a crucial support level at ₹1,43,500. This downward trend suggests a high likelihood of further price reductions. However, there are strong support levels ahead at ₹1,41,000 and ₹1,40,000, the latter being a pivotal base. If gold futures breach ₹1,40,000, it could fuel a more extensive sell-off, potentially triggering a deeper downtrend.

Should gold futures fall to ₹1,36,500, notable support lies at ₹1,35,000. Conversely, a recovery from the current level of ₹1,42,024 may encounter resistance at ₹1,45,000 and ₹1,48,500. For bullish sentiment to emerge, gold futures would need to surpass ₹1,50,000.

Silver futures, which mostly stayed flat during the first half of the week, experienced a sharp decline in the latter part. It hit a ten-month low of ₹1,92,149 on Friday before closing at ₹1,95,719. This trend suggests further declines are likely. The nearest support is at ₹1,90,000, with a potential drop to ₹1,80,000 in the near term.

If gold rebounds, silver futures could bounce back to ₹2,00,000 or even ₹2,08,000. For silver's outlook to shift to bullish, it must decisively break through the ₹2,20,000 barrier. Comments must be in English, written in full sentences, and adhere to the community guidelines.