Gold ($4,332/ounce) lost 4.4 per cent and silver ($72.8/ounce) was down 8.2 per cent last week. In the local market, gold futures (₹1,35,761/10 gm) slipped 2.9 per cent and silver futures (₹2,36,316/kg) lost 1.4 per cent.
MCX-Gold (₹1,35,761)
Gold futures (February) saw a sharp drop in price last Monday. In the following sessions though, it was charting a sideways trend.
The price band of ₹1,34,280-1,36,000 is a support band. If there is a recovery, gold futures can retest ₹1,40,000.
But if the contract falls below ₹1,34,280, its 21-day moving average, it can extend the downswing to ₹1,31,000-1,30,000 region. The short-term trend will become bearish only if the support at ₹1,30,000 is breached.
Trade strategy: While the overall trend remains bullish, there is a chance for gold futures to trade within ₹1,31,000 and ₹1,40,000 this week. At the current juncture, we suggest staying out.
Yet, traders with high risk appetite can buy gold futures (February) if it surpasses ₹1,37,200. Target and stop-loss can be ₹1,40,000 and ₹1,35,800 respectively.
MCX-Silver (₹2,36,316)
Silver futures opened last week with a gap-up and marked a fresh high of ₹2,54,174 on Monday. But then, it could not produce a follow-through rally.
The price action shows that the nearest support and resistance are at ₹2,25,000 and ₹2,50,000 respectively. Since the rally has been sharp recently, there is a good chance for silver futures to witness some consolidation, if not a corrective decline, before establishing seeing the next swing in price.
If the contract sees a daily close above ₹2,50,000, the bulls can regain traction, and the price can rise to ₹2,60,000. But if it slips below the support at ₹2,25,000, the downswing might extend to ₹2,10,000-2,00,000 price band.
Trade strategy: Although the broader uptrend is intact, silver futures might chart a sideways trend. So, we suggest staying out.
Published on January 3, 2026
