Gold ($3,433/ounce) rallied 3.7 per cent and silver ($36.3/ounce) was up nearly 1 per cent last week. Similarly, in the domestic market, gold futures (₹1,00,276/10 gm) appreciated 3.3 per cent and silver futures (₹1,06,493/kg) rose by 1 per cent.
Gold futures (Aug) hit a high of ₹1,00,681 on Friday, which is a record peak, before moderating a little to ₹1,00,276.
The momentum looks strong, and the probability of further rise is high. The nearest potential barriers are at ₹1,03,500 and ₹1,05,000.
In case there is change in direction and gold futures falls, it can find support at ₹1,00,000. Below this, notable support levels are at ₹98,500 and ₹97,600.
Trade strategy: Buy gold futures (Aug) now at ₹1,00,276 and accumulate at ₹98,500. Place initial stop-loss at ₹97,600. When the contract rises to ₹1,02,000, tighten the stop-loss to ₹1,01,000. On a rally to ₹1,03,000, alter the stop-loss to ₹1,02,250. Exit at ₹1,03,500.
Although silver futures (Jul) posted a gain, apart from a rally on Monday, the contract was largely trading in a band. It was held between ₹1,05,000 and ₹1,07,200.
Nevertheless, the outlook is bullish, and the contract can rally anytime. Even though ₹1,07,200 can be a hurdle, we expect silver futures (Jul) to surpass this level and touch ₹1,10,000. Subsequent resistance is at ₹1,11,000.
On the other hand, if silver futures (Jul) drops from the current level, it can find support at ₹1,04,000. A decline below this level is less likely.
Trade strategy: Last week, we suggested buying silver futures (Jul) if it breaks out of ₹1,06,200. Retain this trade. Target and stop-loss can be ₹1,11,000 and ₹1,04,000.
Published on June 14, 2025
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