Gold and silver prices witnessed a recovery from lower levels last week, supported by weak US consumer sentiment data and uncertainty surrounding the ongoing US government shutdown.
Both international and domestic markets ended the week on a positive note, although volatility remained high throughout the session.
In the international market, gold December futures settled at $4,009.80 per troy ounce, up 0.47 per cent, while silver December futures ended at $48.143 per troy ounce, gaining 0.40 per cent.
Similarly, in the domestic market, gold December futures closed at Rs 1,21,067 per 10 grams, rising 0.38 per cent, and silver December futures finished at Rs 1,47,728 per kilogram, up 0.45 per cent.
According to market expert Manoj Kumar Jain, the recent rebound in precious metals came as investors sought safe-haven assets amid weakening economic sentiment in the US The University of Michigan’s consumer sentiment index fell by nearly 6 per cent in November, reflecting growing pessimism about the economy.
The ongoing US government shutdown further weighed on the dollar index, pushing it lower from its recent highs and boosting demand for gold and silver.
Jain noted that gold is currently holding its crucial “make or break” level near $3,870 per troy ounce, while silver is maintaining support around $45.50 per troy ounce on a weekly closing basis.
He expects the trend to remain volatile in the coming week due to fluctuations in the dollar index, uncertainty over the US shutdown, and anticipation of upcoming US inflation data.
For the week ahead, gold is expected to trade in a range of $3,870–4,140 per troy ounce, while silver may move between $45.50–50.50 per troy ounce.
Daily, gold has support at $3,984–3,960 and resistance at $4,028–4,054. Silver’s support lies between $47.70–47.40, with resistance at $48.40–48.84 per troy ounce.
Gold and Silver Key Levels and Targets
In the domestic market, MCX gold has support at Rs 1,20,550–Rs 1,20,100 and resistance at Rs 1,21,660–Rs 1,22,200. Meanwhile, silver is supported at Rs 1,46,800–Rs 1,45,500, with resistance at Rs 1,49,200–Rs 1,50,150.
Jain advises traders to adopt a buy-on-dips strategy as long as gold and silver hold above their key daily closing support levels of Rs 1,17,700 and Rs 1,44,000, respectively.
He added that price volatility is likely to persist, but the broader trend remains positive for precious metals in the near term.