Precious metals were down for a second week in a row. Gold ($3,274/ounce) lost 2.8 per cent and silver ($36/ounce) was down by a marginal 0.1 per cent. Similarly, in the domestic market, gold futures (₹95,470/10 gm) depreciated 3.7 per cent and silver futures (₹1,06,397/kg) was down 1 per cent.

MCX-Gold (₹95,470)

Gold futures (Aug) slipped below a trendline support at ₹96,500. Also, the price is now below both 21- and 50-day moving averages. While the trend has not turned bearish, the bulls has lost some traction.

There could be some more decline from the current level, potentially to ₹92,500. A breach of this can alter the course of trend. On the other hand, if there is a recovery, there are hurdles at ₹97,500 and ₹1,00,000.

Broadly, based on the current chart set-up, the path of the next leg of trend depends on the direction of the breach of ₹92,500-1,00,000 range. 

Trade strategy: Gold futures (Aug) might consolidate between ₹92,500 and ₹1,00,000 for some time before establishing a trend. We suggest staying out for now.

MCX-Silver (₹1,06,397)

Silver futures (Sep) was largely stuck in the narrow range of ₹1,05,500-1,08,500 through the last week. The price region of ₹1,05,000-1,05,500 is a support band.

A breach of ₹1,05,000 can confirm a head and shoulder pattern, potentially leading to a decline to ₹1,00,000. On the other hand, if the bulls regain traction, it ought to lift the contract above the resistance at ₹1,10,800 to open the door for further rally. The barrier above ₹1,10,800 is at ₹1,15,000.

Trade strategy: Exit the longs initiated at ₹1,06,200 on the July contract, which will expire on July 4. Further, for fresh positions, we suggest waiting for more clarity.

Published on June 28, 2025