Precious metals witnessed a considerable rally last week. Gold ($4,342/ounce) and silver ($63.90/ounce) surged 7.3 per cent and 10.3 per cent, respectively. Similarly, in the domestic market, gold futures (₹1,51,820/10 gm) was up 5.9 per cent and silver futures (₹2,31,466/kg) gained 6.6 per cent. Below is an analysis.
MCX-Gold (₹1,51,820)
Gold futures (Oct), which saw a muted opening last Monday, gained traction and saw a sharp rally in the following sessions. It broke out of a resistance at ₹1,47,000 and also, the price is now above both 21- and 50-day moving averages.
The short-term outlook appears positive for gold futures. On the upside, it could rise to ₹1,58,000. But before this uptick, the contract might see a minor correction in price, potentially to ₹1,49,000.
In case gold futures decline and breach the resistance-turned-support at ₹1,47,000, it can extend the downswing to ₹1,43,000. However, as it stands, the likelihood of a rally is high.
Trade strategy: Buy on a dip to ₹1,49,000. Target and stop-loss can be ₹1,58,000 and ₹1,46,000, respectively.
MCX-Silver (₹2,31,466)
Silver futures (Sep) rebounded on the back of the support at ₹2,14,000. It surpassed a hurdle at ₹2,27,000 to close the week at ₹2,31,466.
While the price action shows a positive bias, the contract has a barrier ahead at ₹2,38,000. A breakout of this will clear the way for a sustainable rally. Notable resistance above ₹2,38,000 is at ₹2,59,000.
In case the contract falls from the current level, it can find support at ₹2,27,000. A breach of this can drag the price deeper to ₹2,20,000.
Trade strategy: Go long if the price dips to ₹2,27,000. Target and stop-loss can be ₹2,50,000 and ₹2,19,000 respectively.
Published on August 8, 2026
