Bullion Cues: Silver Trend Firm

Silver surged ahead and posted double-digit gains last week whereas gold saw comparatively lower upside. Silver ($90.1/ounce) rallied 12.7 per cent and gold ($4,596/ounce) was up 1.9 per cent.

In the domestic market, silver futures (₹2,87,762/kg) and gold futures (₹1,42,517/10 gm) rose 13.9 per cent and 2.7 per cent respectively.

MCX-Gold (₹1,42,517)

Gold futures (February) surpassed the hurdles at ₹1,40,000 and ₹1,42,000. While this is a bullish indication, the contract is hovering near the trendline resistance, which is at ₹1,43,000.

If the contract breaks out of ₹1,43,000, it can extend the upswing to ₹1,50,000. But if it declines from the current level, it can find support at ₹1,37,500 and ₹1,34,000.

Only a breach of the latter will turn the outlook negative as it can confirm a rising wedge pattern, an indication of bearish trend reversal.

Trade strategy: Buy gold futures (February) if it breaks out of ₹1,43,000. Target and stop-loss can be ₹1,50,000 and ₹1,39,800 respectively. Risk averse traders can stay out.

MCX-Silver (₹2,87,762)

Silver futures continues to post gains week after week, showing solid momentum. It has run up quickly and there is risk of a corrective decline. In fact, the likelihood of a correction increases as it extends the rally.

However, there are no indications of weakness or a bearish reversal as yet. Silver futures could soon hit ₹3,00,000. But if the contract declines, it can find support at ₹2,76,000 and ₹2,72,000.

The near-term outlook will become bearish only if the price slips below the 21-day moving average, which is now at ₹2,45,000.

Trade strategy: Go long on silver futures (March) at ₹2,85,000. Target and stop-loss can be ₹3,00,000 and ₹2,76,000 respectively. Risk averse traders can skip this trade.

Published on January 17, 2026