Precious metals hit record highs once again and posted a gain for a ninth week in a row. Gold ($4,254/ounce) was up 5.9 per cent and silver ($51.90/ounce) surged 3.2 per cent. In the domestic market, gold futures (₹1,27,008/10 gm) and silver futures (₹1,56,604/kg) were up 4.7 per cent and 6.9 per cent respectively.
MCX-Gold (₹1,27,008)
Gold futures marked an all-time high of ₹1,32,294 on Friday before moderating to ₹1,27,008. It lost 2 per cent in the last session and this has led to the contract forming a bearish engulfing pattern on the daily chart. Also, the volume of selling on Friday was significant.
Given that the rally has been sharp and that the chart is now showing early signs of weakness, we expect gold futures to drop to ₹1,20,000 in the near term. A breach of this can drag it to ₹1,19,200.
But if the rally continues and the contract surpasses ₹1,32,294, it can extend the rise to ₹1,35,000.
Trade strategy: Short gold futures (Dec) at ₹1,28,000. Target and stop-loss can be ₹1,20,000 and ₹1,32,300 respectively.
MCX-Silver (₹1,56,604)
Silver futures made a high of ₹1,70,415 on Friday before declining and posting a loss of 6.6 per cent for the session. The chart shows a bearish engulfing pattern and the sell-off saw considerable volume.
We forecast further moderation in silver futures, possibly to ₹1,44,000. A break below this can lead to a deeper fall to ₹1,40,000-1,41,000 price band.
In case the bulls regain traction and push the contract above ₹1,70,415, we might see an upswing to ₹1,75,000. Although this is less likely.
Trade strategy: Sell silver futures (Dec) at ₹1,61,800. Target and stop-loss can be ₹1,44,000 and ₹1,70,500 respectively.
Published on October 18, 2025
