Gold and silver prices in India edged higher on Monday, tracking gains in international bullion markets, as both precious metals attempted to stabilise following a sharp selloff last week. Investors are now awaiting the US Federal Reserve's interest rate decision later this week for further cues on the direction of bullion prices.
MCX gold rate for December futures contracts rose by Rs 911, or 0.64%, to Rs 1,42,935 per 10 grams. MCX silver price for December futures contract traded higher by Rs 381, or 0.19%, at Rs 1,96,100 per kg. During the session, MCX gold price touched an intraday high of Rs 1,43,100 level, while silver price hit a high of Rs 1,97,186 level.
In the international market, spot gold rose 0.3% to $4,008.70 per ounce after falling to its lowest level since mid-July in the previous session. US gold futures for December delivery advanced 0.3% to $4,021.90 per ounce.
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Lower crude oil prices helped ease inflation concerns, lending support to bullion. However, the outlook remains uncertain as investors assess the Federal Reserve's policy trajectory and its implications for the US dollar and bond yields.
Gold prices declined 4% last week, marking their steepest weekly fall since June. On the MCX, gold futures lost nearly 4% to settle around Rs 1.42 lakh per 10 grams. Silver prices witnessed steeper losses, falling more than 7% last week to settle near Rs 1.96 lakh per kg, below the psychologically important Rs 2 lakh mark.
Gold Price Outlook
“Gold has pulled back around 5% from its October record, and this looks like a healthy correction rather than a change in trend,” said Rajeev Sharan, Head of Research at Brickwork Ratings.
He attributed the decline to profit-booking following a sharp rally, a stronger US dollar, elevated US bond yields and reduced expectations of Federal Reserve rate cuts. Easing geopolitical tensions have also weighed on safe-haven demand.
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Sharan expects gold prices to remain volatile and range-bound in the near term, with movements in the dollar and the Fed's policy outlook likely to determine the direction.
He considers the recent correction a potential buying opportunity for long-term investors, while recommending staggered purchases instead of deploying capital at once. Festive and wedding demand, along with continued central bank buying, could provide support to prices.
From a technical perspective, immediate resistance for MCX gold lies at Rs 1,43,000–1,43,700, followed by Rs 1,45,300–1,46,000. Support is placed at Rs 1,40,000–1,41,000, said Ponmudi R, CEO of Enrich Money.
The Relative Strength Index (RSI) near 33 indicates that gold is approaching oversold territory, while a widening negative MACD histogram points to persistent bearish momentum.
Silver Price Outlook
For MCX silver, immediate resistance is seen at Rs 2,00,000–2,02,000, followed by Rs 2,06,000–2,08,000. On the downside, support lies at Rs 1,92,000–1,94,000, with the next support zone at Rs 1,83,000–1,85,000, Ponmudi said.
Silver's long lower shadow near Rs 1,92,000 on Friday suggests an attempt to establish a price base. However, the RSI near 25 indicates deeply oversold conditions, while the MACD remains below its signal line, signalling continued selling pressure.
“Today's rebound mirrors the recovery in COMEX silver, but yield-driven pressure and the gold-silver ratio remaining above 74 continue to weigh on sentiment. The near-term bias remains negative,” Ponmudi said.
A sustained move above Rs 2,00,000–2,02,000 could help stabilise silver prices. Conversely, a decisive break below Rs 1,92,000–1,94,000 may open the door to further declines towards Rs 1,83,000–1,85,000.
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Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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