Bullion Cues: Supports face a test
A breach could trigger another round of selling
Precious metals prices are falling as bears tighten their grip. Gold and silver prices are down by 3 percent and 9.3 percent respectively. Gold is now testing a key support level, while silver has more room to fall before hitting its nearest base. In the domestic market, gold futures lost 2.5 percent, and silver futures tumbled 8.5 percent.
Gold's price breached support levels at ₹1,41,000 and ₹1,40,000, but the downtrend remains strong, with the nearest support at ₹1,36,500. Gold in dollar terms is testing a crucial support at $3,850. A recovery from this level could help domestic gold futures rebound, potentially reaching ₹1,40,000 and ₹1,41,000. However, for a bullish outlook, gold futures must break above ₹1,50,000.
If gold in international markets falls below $3,850, it could trigger another sell-off, dragging MCX gold futures down to ₹1,36,500 and ₹1,33,300. Silver futures continue to decline, with no signs of the loss slowing down. The nearest support for silver is at ₹1,76,000, followed by ₹1,67,000, a trendline support. Silver in dollar terms has immediate support at $48 and $46, making the $46-48 price band a crucial support zone.
A rebound from this region could see MCX silver futures rise to ₹2,00,000, a potential resistance level. If silver in international markets extends its decline below $46, it could spark further selling in the domestic market, potentially sending MCX silver futures to ₹1,52,000.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
