Gold steadied last week whereas silver depreciated. Gold ($3,363/ounce) was up 0.8 per cent but silver ($37/ounce) lost 3 per cent.
Similarly, in the domestic market, gold futures (Oct) (₹99,754/10 gm) gained 1 per cent whereas silver futures (Sep) (₹1,10,258/kg) was down 2.5 per cent.
MCX-Gold (₹99,754)
The October gold futures was largely flat until Thursday. But it rallied on Friday, leading to a weekly gain. The contract bounced off a trendline support ₹98,500.
Friday’s rally has placed the bulls in a better position, and we can expect further rally. The nearest resistance is at ₹1,01,500. A breakout of this can trigger an upswing to ₹1,05,000.
In case the price drops and gold futures slip below the trendline support, it can extend the decline to ₹97,000. Subsequent support is at ₹96,000.
Trade strategy: Retain the longs initiated on gold futures (Oct) at ₹98,700. Target and stop-loss can be ₹1,01,500 and ₹97,650 respectively.
MCX-Silver (₹1,10,258)
Silver futures (Sep) fell as ₹1,14,000 acted as a barrier last week. While the broader trend is bullish, the prevailing price action hints at an extension of the ongoing downswing before the bulls regain traction.
We expect silver futures to drop to ₹1,08,200 where a trendline coincides. Below this is the support band of ₹1,05,000-1,06,400. A recovery can lift the contract to ₹1,15,000. But a breach of ₹1,05,000 can trigger a fall to ₹1,00,000.
Nevertheless, as it stands, a fall below the support at ₹1,05,000 is less likely.
Trade strategy: At the current level, the downside is limited for fresh shorts and the risk-reward ratio is unfavourable for long positions. So, we suggest staying out.
Published on August 2, 2025