Gold and silver prices saw a bounce on Monday after a weak start, tracking steady trends in global markets. While the early dip had made investors cautious, both metals managed to move higher as the day progressed.
At the time of writing, MCX Gold was trading at Rs 1,47,683, up by Rs 428, while MCX Silver was at Rs 2,28,395, gaining Rs 441.
, even as markets continued to deal with mixed signals around inflation and interest rates.
Market experts say gold is showing signs of strength despite some volatility during the day.
Ponmudi R, CEO of Enrich Money, explained, “MCX Gold opened with a mild gap up and is currently trading above Rs 1,46,000 support band, indicating underlying buying interest at this level despite some intraday volatility.”
He added that the broader trend remains cautious but steady. “On the upside, the Rs 1,49,000–Rs 1,50,000 zone remains the immediate resistance area. A sustained move above this level would strengthen bullish momentum and may open the path toward Rs 1,53,000, with further upside potential toward Rs 1,58,000.”
While prices are holding firm for now, there are risks if key levels are breached.
Ponmudi noted, “A sustained break below Rs 1,44,000 could trigger extended profit booking, potentially dragging prices lower.”
This suggests that while gold is stable, sudden corrections cannot be ruled out, especially if global cues turn negative.
Silver too is trading with a slightly positive bias. It opened strong and is currently holding above the Rs 2,26,000 level, which signals underlying support.
According to Ponmudi, “The Rs 2,32,000 level now acts as immediate resistance. A sustained move above this could push prices toward the Rs 2,37,000–Rs 2,40,000 range.”
However, he also cautioned about downside risks. “A break below Rs 2,20,000 may accelerate the fall toward Rs 2,15,000, with deeper support seen around Rs 2,00,000–Rs 2,05,000.”
Globally, gold prices remain steady but volatile. A softer US dollar has offered some support, but rising energy prices are adding to inflation concerns.
Markets are now expecting fewer chances of interest rate cuts in the US this year. Higher interest rates usually reduce the appeal of gold, as it does not offer any fixed returns. At the same time, inflation tends to support gold as a hedge, keeping the outlook mixed.
For investors, this is a wait-and-watch phase. Prices are holding steady, but clear direction is still missing.
If you are a long-term investor, gradual buying on dips could make sense, especially if gold stays above key support levels. However, short-term traders may need to be cautious, as prices could swing with global news and policy signals.
The key is to avoid rushing in at higher levels and keep an eye on important support and resistance zones before making any move.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)