Gold and silver prices have been consolidating sideways for more than two weeks now. Gold is stuck between $3,885 and $4,050 per ounce. Silver on the other hand is oscillating between $45.50 and $49.50 per ounce. The yellow metal closed the week at $4,001 per ounce and silver at $48.3 per ounce.
On the domestic front, the gold and silver futures contracts on the Multi Commodity Exchange (MCX) remained broadly stable. The MCX Gold Futures contract closed the week at ₹1,21,067 per 10 gm and MCX Silver at ₹1,47,728 per kg
Is this recent consolidation of gold and silver just a pause before the next leg of fall or a base formation for the next leg of rally? We will have to wait and see.
Gold ($4,001)
The near-term picture is unclear. A crucial support is around $3,900. Resistance is around $4,100. A breakout on either side of these two levels will then determine the next leg of move.
A break below $3,900 will be bearish. It can drag the gold price down to $3,820 or $3,780. Such a fall will indicate that a top is in place for the yellow metal. It will then keep the prices under pressure for more fall going ahead.
On the other hand, a break above $4,100 will give a breather. That can take the price up to $4,300 again. It will also keep the broader uptrend alive.
MCX Gold (₹1,21,067)
Resistance is in the ₹1,23,400-1,23,600 region. As long as the contract stays below this resistance zone, the bias will remain negative. A fall to ₹1,14,400 or ₹1,13,800 is possible in that case. To avoid this fall, the contract has to break above ₹1,23,600 decisively. Such a break can ease the downside pressure and take the contract up to ₹1,26,000-1,27,000.
Trade Strategy
Traders can wait for a rise. Go short at ₹1,21,600 and ₹1,22,400. Keep the stop-loss at ₹1,25,200. Trail the stop-loss down to ₹1,21,000 as soon as the contract falls to ₹1,20,200. Revise the stop-loss further lower to ₹1,20,100 and ₹1,18,600 when the contract falls to ₹1,19,200 and ₹1,16,800. Exit the short positions at ₹1,14,600.
Silver ($48.30)
A strong rise above $49.50 is needed to ease the downside pressure. If that happens a revisit of $52 and $54 levels is possible. But failure to breach $49.50 can keep silver vulnerable to break below $45.50. Such a break can drag the price down to $43.50 in the short term.
MCX Silver (₹1,47,728)
Crucial support is at ₹1,40,400 and resistance is at ₹1,50,600. A breakout on either side of these two levels will determine the next leg of move. A decisive break above ₹1,50,600 will ease the downside pressure. It can then take the contract up to ₹1,55,000-1,56,000.
On the other hand, a break below ₹1,40,400 can drag the contract down to ₹1,36,500.
Trade Strategy
The bias is unclear. So, traders can stay out of the market. Look for the direction of breakout and then take trades accordingly.
Published on November 8, 2025