Gold ($4,114/ounce) was down 3.3 per cent and silver ($48.70/ounce) lost 6.2 per cent last week. In the domestic market, gold futures (₹1,23,451/10 gm) and silver futures (₹1,47,470/kg) were down 2.8 per cent and 5.8 per cent respectively.
MCX-Gold (₹1,23,451)
Gold futures, which saw a sharp fall over the last week, is now hovering around its 21-day moving average. Also, there is support at ₹1,20,000. Nevertheless, only a rise above ₹1,25,000 can open the door for a rally this week.
Broadly, the next leg of trend depends on the direction of the break of the ₹1,20,000-1,25,000 range. Resistance above ₹1,25,000 is at ₹1,30,000 whereas support below ₹1,20,000 is at ₹1,15,000.
Trade strategy: We suggested a short position on gold futures (Dec) at ₹1,28,000 last week. Exit this now at ₹1,23,451.
If the contract rises above ₹1,25,000 go long with a stop-loss at ₹1,22,500 for a target of ₹1,30,000. But in case gold futures breaches the support at ₹1,20,000 initiate short with a stop-loss at ₹1,22,500 for a target of ₹1,15,000.
MCX-Silver (₹1,47,470)
Unlike gold futures, silver futures slipped below the 21-day moving average. But there is a support at ₹1,44,000. However, only a breakout of ₹1,50,000 can turn the weekly outlook positive. In such a case, it can rise to ₹1,65,000.
That said, if the fall extends leading to the break of the support at ₹1,44,000, we might see another leg of downtrend which can potentially drag the contract to ₹1,33,000.
Trade strategy: Stay out for now. Buy silver futures (Dec) if it surpasses the barrier at ₹1,50,000. Target and stop-loss can be ₹1,65,000 and ₹1,44,000.
But if the contract falls below ₹1,44,000, consider going short with a stop-loss at ₹1,50,000. Book profits at ₹1,33,000.
Published on October 25, 2025
