Gold and Silver Prices Recover After Slow Start: Will the Uptrend Continue?

After a sluggish opening on Friday, both gold and silver prices regained momentum to end the day slightly higher on the Multi Commodity Exchange (MCX). The recovery came amid firm central bank demand and optimism surrounding global trade developments, even as a stronger US dollar kept investors cautious.

Weak Start, Modest Recovery

Gold December futures on the MCX opened 0.29% lower at Rs 1,21,148 per 10 grams, compared to the previous close of Rs 1,21,508. Silver December futures also slipped 0.47%, opening at Rs 1,48,140 per kg on October 31.

However, by the end of the trading session, both metals bounced back — gold rose 0.06% to Rs 1,21,576, while silver gained 0.29% to Rs 1,49,271 per kg, reflecting a modest but steady rebound.

Global Trends Keep Traders on Edge

Internationally, gold prices dipped slightly as the US dollar strengthened following hawkish comments from the Federal Reserve. Despite this, the metal remained poised for its third consecutive monthly gain, thanks to consistent central bank buying, particularly from Kazakhstan and Brazil.

Rahul Kalantri, VP Commodities at Mehta Equities Ltd, noted,

“After a shaky start, gold and silver managed to recover and close higher. Silver posted stronger gains as both metals rebounded from early losses triggered by Fed Chairman Powell’s remarks.”

He added that while the dollar index touched a three-month high, the European Central Bank’s decision to hold rates steady could limit further dollar appreciation — providing near-term support to precious metals.

The recent US-China trade truce has also brought some relief, though long-term economic uncertainty persists, keeping safe-haven assets like gold in focus.

Support and Resistance Levels

Experts have identified key technical levels that could guide short-term trading:

• Gold support: Rs 1,21,470 – Rs 1,20,880

• Gold resistance: Rs 1,21,990 – Rs 1,22,500

• Silver support: Rs 1,47,450 – Rs 1,46,750

• Silver resistance: Rs 1,49,740 – Rs 1,50,880

According to Jateen Trivedi, VP Research Analyst at LKP Securities,

“Gold prices stayed volatile but traded positive near Rs 1,21,650 per 10 grams, even as the dollar index moved higher. Elevated risk sentiment continues to offer support, with key levels seen near Rs 1,18,000 as support and Rs 1,24,000 as resistance.”

What’s Next for Gold and Silver?

Market experts suggest that upcoming trade discussions among the US, China, and India could determine the next phase of movement for bullion prices. Until then, volatility is expected to persist, with strong central bank purchases and safe-haven demand likely to provide a cushion against sharp declines.

While global macroeconomic signals remain mixed, analysts believe gold and silver will stay range-bound with an upward bias as investors hedge against inflation and currency uncertainty.