The rates of gold and silver rose significantly in early deals on the MCX on Monday, December 15, amid positive global cues. MCX gold February futures were 0.72% up at ₹1,34,580 per 10 grams, while MCX silver March contracts were 1.36% up at ₹1,95,466 per kg around 9:15 am.
On Friday, December 12, MCX gold February futures jumped by nearly ₹2,800, or 2.11%, to a record high of ₹1,35,263 per 10 grams, but ended 0.82% higher at ₹1,33,551 per 10 grams after some profit booking.
Similarly, MCX silver March contracts surged by ₹2,700, or 1.3%, to their all-time high of ₹2,01,615 per kg in the previous session. However, it saw strong profit booking and closed with a loss of 3.33% at ₹1,92,318 per kg.
Both metals gained on Monday morning amid weakness in the US dollar and bond yields. The dollar index slipped by 0.10%, while the benchmark 10-year US Treasury yields inched lower to 4.18%, making non-yielding bullion more attractive for investors.
Gold and silver prices have seen sharp gains following the US Federal Reserve’s 25-basis-point interest rate cut on December 10. Expectations of US Fed rate cuts have been the key drivers behind the sharp rise in gold and silver prices this year.
Central bank buying, robust inflows in gold and silver ETFs, increased geopolitical risks, and uncertainty over the global macroeconomic situation, due to US tariffs, have also contributed to the rise in gold prices this year.
Domestic spot gold prices have jumped by nearly ₹55,800 per 10 grams, or more than 73%, this year till December 12. Spot silver, on the other hand, has surged by nearly ₹1,08,000 per kg, or 126%, this year.
“Gold is on track for its strongest annual gain since 1979, driven by robust central bank purchases, strong ETF inflows, safe-haven demand, and a shift by investors away from sovereign bonds and currencies,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted.
Gold and silver: Key levels to watch
Trivedi believes MCX Gold February futures may stay elevated, and ₹1,35,000 per 10 grams is the next resistance on a day-to-day basis.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,300 and $4,274, while resistance is at $4,355 and $4,400 per troy ounce, and silver has support at $60.60 and $59.10, while resistance is at $63.50 and $65 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,32,200 and ₹1,31,000 and resistance is at ₹1,34,800 and ₹1,35,500, while silver has support at ₹1,90,000 and ₹1,87,700 and resistance is at ₹1,95,500 and ₹1,98,000.
“We suggest buying gold on dips around ₹1,33,000 and ₹1,32,200 range with a stop loss of ₹1,31,000 for the target of ₹1,34,800 and ₹1,35,500, and wait for some corrective dips for initiating fresh long positions in the silver,” said Jain.
According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $4,265 and $4,245, while resistance is at $4,340 and $4,375. Silver has support at $61.70 and $61.25, while resistance is at $62.65 and $63.15.
In INR, Kalantri said gold has support at ₹1,32,850 and ₹1,32,150 while resistance is at ₹1,34,550 and ₹1,35,270. Silver has support at ₹1,91,450 and ₹1,90,780, while resistance is at ₹1,93,810 and ₹1,94,770.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.