Gold and Silver Price Forecast: Will Gold Drop to Rs 1.40 Lakh per 10 Grams and Silver Reach Rs 2.20 Lakh per Kg?
Gold and silver prices are currently showing a bearish trend, according to Abhilash Koikkara, Head of Forex & Commodities at Nuvama Professional Clients Group. As the market navigates through fluctuations, analysts predict that the upcoming week will be crucial for both metals. The support level for gold is expected to be around 140,000, while silver is facing resistance at 255,000. Traders are advised to align their strategies with the prevailing market trends to manage risks effectively.
MCX Gold Price Outlook
The MCX Gold market has experienced a downturn, retreating from its recent highs and facing selling pressure throughout the past week. Technically, the price has encountered resistance at a significant trendline, leading to a formation of lower lows on the daily chart, which is indicative of a bearish pattern. A breakout above this trendline could potentially shift market sentiment and open the door for upward movement. However, the current trend remains largely negative, suggesting that a break below key support levels could accelerate further declines.
Looking ahead, the weekly low of 140,000 is anticipated to serve as a critical support zone. This level is significant from a technical perspective, and as the market correction continues, prices are likely to test this threshold. Any short-term increases in price may present opportunities for traders to establish short positions rather than signal a bullish reversal. On the other hand, gold faces substantial resistance near the recent peak of 155,500. A convincing breakout above this level would invalidate the current bearish momentum and could lead to a new upward trend. Until then, the overall bias for gold remains tilted to the downside, with further losses still a possibility.
MCX Gold Trading Strategy
For traders looking to navigate the current gold market, the following strategy is recommended: the current market price (CMP) stands at 149,000, with a target set at 140,000. A stop-loss is advised at 155,500 to manage potential risks effectively. This strategy aligns with the prevailing bearish trend while allowing for adjustments based on market movements.
MCX Silver Price Outlook
Silver prices are also reflecting a sideways to bearish trend, facing resistance at a critical trendline. The market has seen two consecutive weeks of negative closes, reinforcing the likelihood of an ongoing bearish phase. Traders are encouraged to align their positions with this dominant trend, using stop-loss levels around previous weekly highs to mitigate downside risks. The week began on a weak note, with prices trading below the 30-day Exponential Moving Average (EMA), indicating that the negative bias remains intact.
The immediate support level for silver is around the recent swing lows at 220,000. A decisive close below this level could deepen the bearish sentiment in the market. Conversely, any short-term rebounds should be viewed as selling opportunities. On the upside, silver may attempt to challenge the trendline resistance near 255,000 in the coming sessions. A sustained close above this level would weaken the current bearish trend, as indicated by momentum indicators. However, as long as 255,000 acts as a ceiling, the bearish structure is likely to persist, suggesting further corrections may be on the horizon.
MCX Silver Trading Strategy
For those trading in silver, a strategic approach is recommended: the current market price (CMP) is at 240,500, with a target of 220,000. A stop-loss should be set at 255,000 to effectively manage risk. This strategy is designed to align with the prevailing bearish trend while providing flexibility to adapt to market changes.
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