Precious metals prices moderated last week. Gold ($4,121/ounce) and silver ($59.90/ounce) lost 1.3 and 4.1 per cent respectively. Similarly, in the domestic market, gold futures (₹1,43,478/10 gm) was down 2.6 per cent and silver futures (₹2,22,664/kg) slipped 6.2 per cent. Below is an analysis.
MCX-Gold (₹1,43,478)
Gold futures (Aug), on the back of the 21-day moving average resistance at ₹1,48,000, saw a decline last week. The price action now hints that the contract has resumed the downtrend after a corrective rally.
As it stands, gold futures will most likely retest the support at ₹1,40,500. A breach of this can drag the contract lower to ₹1,38,000.
On the other hand, if the recovery gains traction and the contract surpasses the hurdle at ₹1,48,000, it can extend the upswing to ₹1,50,000. Resistance above ₹1,50,000 is at ₹1,53,500.
Trade strategy: Although gold futures is likely to drop from the current level, the risk-reward ratio is not good for fresh short positions now. Consider selling if the contract inches up to ₹1,46,000. Target and stop-loss can be ₹1,40,500 and 1,48,500 respectively.
MCX-Silver (₹2,22,664)
Silver futures (Sep) fell off the barrier at ₹2,40,000 last week. This is a key level as both 21- and 50-day moving averages coincides here.
The decline is a likely indication that silver futures, after experiencing a corrective rise, has started to fall gain. While the nearest potential support is at ₹2,14,000, the contract might extend the decline to ₹2,12,000.
However, if silver futures rally and go above ₹2,40,000, it can strengthen further to ₹2,53,000 and possibly to ₹2,58,000.
Trade strategy: Short silver futures at ₹2,30,000. Place stop-loss at ₹2,41,000. Book profits at ₹2,12,000.
Risk-averse traders can avoid fresh positions on both gold and silver futures.
Published on July 11, 2026