Gold and silver prices moved higher on Thursday, with gold approaching the Rs 1.60 lakh mark per 10 grams and silver trading above Rs 2.4 lakh per kg on the Multi Commodity Exchange. Easing US Treasury yields and improving global equity sentiment supported precious metals, while geopolitical uncertainty surrounding the US-Iran situation and firm crude oil prices continued to influence market sentiment.
At the time of writing, MCX gold was trading at Rs 158,284 per 10 grams, up 0.18%, while MCX silver was trading at Rs 240,060 per kg, gaining 1.33%.
Gold has remained close to record levels following a sharp rally. Lower US Treasury yields tend to support gold prices by reducing the appeal of interest-bearing assets and increasing demand for the precious metal.
Market analysis indicates that a sustained move above the Rs 158,600 level could push MCX gold towards Rs 160,000-Rs 160,500, with further upside potentially extending towards Rs 162,000. On the downside, immediate support is seen around Rs 156,500-Rs 156,000, followed by the Rs 154,000-Rs 153,300 range.
Gold's Relative Strength Index is around 71, placing it in the overbought zone. While this does not necessarily signal an immediate decline, it indicates the possibility of a short-term pause or correction after the recent rally.
Silver has also maintained strong momentum, crossing the important Rs 240,000 per kg level. A sustained move above the Rs 241,000 resistance level could potentially take silver towards Rs 245,000-Rs 246,000, with Rs 250,000 emerging as another key level.
On the downside, immediate support for silver is seen between Rs 235,000 and Rs 234,000, followed by the Rs 230,000-Rs 229,000 range. Silver's RSI remains in positive territory, reflecting continued bullish momentum, although a fall below Rs 240,000 could lead to a short-term pullback.
Geopolitical uncertainty remains an important factor for precious metal prices. The unresolved US-Iran situation could continue to support demand for gold as a safe-haven asset. At the same time, rising crude oil prices remain a concern for India, as higher oil prices can increase the country's import bill and add to inflationary pressure.
For investors, the sharp rally in gold and silver has increased the risk of short-term profit-taking. Existing investors may consider holding their positions while monitoring important support levels, while fresh investors may prefer staggered buying instead of investing a large amount at current levels.
Gold investors may closely track the Rs 158,000 zone, while silver investors should watch the Rs 240,000 level. A sustained move above key resistance levels could support further gains, while a break below important support zones may trigger a short-term correction.
The broader trend for precious metals remains positive, but volatility is likely to remain high after the recent rally. Investment decisions should be based on individual financial goals, investment horizon and risk appetite rather than short-term price movements.
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