The precious metals extended the rally last week too and hit fresh highs. Gold ($3,685/ounce) was up 1.2 per cent and silver ($43/ounce) appreciated 2.1 per cent. In the domestic market, gold futures (₹1,09,847/10 gm) and silver futures (₹1,29,838/kg) were up 0.4 per cent and 0.8 per cent respectively.
MCX-Gold (₹1,09,847)
Gold futures hit a fresh high of ₹1,10,666 early last week. But then it moderated and closed the week at ₹1,09,847.
Nevertheless, the price action continues to exhibit bullishness, and the likelihood of further rally is high. From the current level, gold futures can soon rise to ₹1,12,000.
On the other hand, if there is a fall, it can find support at ₹1,08,600. Below this is the 21-day moving average support at ₹1,06,750.
That said, overall, the outlook remains positive and so, traders can consider buying.
Trade strategy: Go long on gold futures (October) now at ₹1,09,847 and place initial stop-loss at ₹1,08,500. When the contract hits ₹1,11,000, revise the stop-loss to ₹1,10,000. Book profits at ₹1,12,000.
MCX-Silver (₹1,29,838)
Silver futures performed better than gold futures over the last week. The mid-week decline was relatively less and the recovery was quicker.
From a short-term trend perspective, ₹1,25,000 is an important support. Until this level holds true, the near-term trend will be positive. Silver futures is likely to extend the current upswing to ₹1,33,000, a potential resistance.
But if there is a price drop from the current level, silver futures can find support at ₹1,25,000 and ₹1,23,000.
Trade strategy: We suggested buying silver futures (December) at ₹1,26,700. Retain this trade with a stop-loss at ₹1,25,000. When the contract rises to ₹1,31,000, alter the stop-loss to ₹1,29,000. Book profits at ₹1,33,000.
Published on September 20, 2025