Bullion Cues: Supports fuel a rebound
Outlook is positive with dollar remaining a risk
Precious metals, gold and silver, rebounded last week after recent declines, with gold up 5% to $4,070.60 per ounce and silver up 5.8% to $51.70 per ounce. Gold's bounce off a long-term support level has reignited bullish sentiment, while silver's recovery has also been noted. However, a potential dollar appreciation poses a risk to the metals' gains.
In the domestic market, gold futures gained 2.7% to ₹1,42,167 per 10 gram, and silver futures rose 3.2% to ₹1,84,787 per kg, despite the rupee strengthening 1.1% against the dollar last week. Gold futures rallied from the support level at ₹1,38,000, driven by a global price recovery from $3,850. Further gains are possible as international gold nears $4,000, though hurdles remain.
The nearest resistance for MCX gold futures is at ₹1,45,000, a level that could bolster bullish momentum and push the contract to ₹1,50,000. A breakout above ₹1,50,000 could signal a positive medium-term outlook. On the downside, support levels at ₹1,40,000 and ₹1,38,000 could maintain a positive bias, with a breach of ₹1,38,000 potentially dragging the contract to ₹1,33,300.
Silver futures, which marked a lower low of ₹1,75,251 before recovering, appear weaker than gold but could still benefit from gold's recovery. If international silver rebounds from the $46-48 support zone, the outlook for silver remains constructive, with MCX silver futures potentially reaching ₹1,93,750, then ₹2,00,000, and ultimately ₹2,10,000 if a breakout above ₹2,00,000 occurs.
Conversely, a fall below the support level of ₹1,75,000 could trigger a deeper decline to ₹1,67,000.
Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
