Gold rallied to record levels whereas silver hit multi-year high last week. Gold ($3,587/ounce) was up 4 per cent and silver ($41/ounce) appreciated 3.3 per cent. Similarly, in the domestic market, gold futures (₹1,07,728/10 gm) gained 3.8 per cent and silver futures (₹1,24,697/kg) was up 2.3 per cent.
MCX-Gold (₹1,07,728)
Gold futures (October) hit a record high of ₹1,07,807 on Friday before ending the session a little lower at ₹1,07,728. The price action shows a steady uptrend, and the chances of a further rally are high.
In the near term, the contract might touch ₹1,10,000. In case there is a correction from the current level, gold futures can find support at ₹1,05,000 and ₹1,04,400. A decline below the latter is less likely.
Trade strategy: Traders can go long at ₹1,07,700 and ₹1,05,000. Stop-loss can be at ₹1,04,000. When the contract touches ₹1,09,000, alter the stop-loss to ₹1,08,000. Exit at ₹1,10,000.
MCX-Silver (₹1,24,697)
Silver futures (December) rallied last week. However, the prevailing price action shows that it is not as strong as gold futures. That said, while there might be a correction in price, the broader uptrend is bullish.
From the current level, silver futures might dip to ₹1,21,000. But then, it is highly likely that it will resume the uptrend and rally to ₹1,30,000 in the near term.
In case the support at ₹1,21,000 is breached, silver futures can extend the decline to ₹1,19,000, where the 50 per cent retracement of the recent upswing lies.
Trade strategy: Buy silver futures (December) if the price dips to ₹1,24,000 and ₹1,21,500. Stop-loss can be ₹1,18,500. When the contract rises to ₹1,28,000, alter the stop-loss to ₹1,26,000. Book profits at ₹1,30,000.
Published on September 6, 2025
