Now Reading: Nuvama sees sideways to bearish trend for gold and silver
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Nuvama sees sideways to bearish trend for gold and silver
The Story in Brief
Gold and silver prices are expected to stay under pressure in the near term, with a sideways to bearish trend, according to Abhilash Koikkara, Head of Forex and Commodities at Nuvama Professional Clients Group. MCX Gold is trading at Rs 151,300, with a target of Rs 144,000 and a stop loss at Rs 155,000. A sustained break below the 148,000 support level could extend the decline to the 144,000 to 140,000 zone.
MCX Silver, trading at Rs 234,600, has a target of Rs 225,000 and a stop loss at Rs 244,000. Koikkara said the key support for silver this week is 225,000, with resistance at 245,000 and then 248,000. A move above 248,000 would confirm a bullish bias. The overall technical outlook remains weak, and momentum indicators point to a continued corrective phase.
Indian Opinion Analysis
Commodity prices have been under global pressure from a strong US dollar and expectations that the US Federal Reserve will keep interest rates higher for longer. Gold, which hit an all-time high above Rs 170,000 per 10 grams on MCX in early 2024, has corrected sharply since then. The 148,000 level is the last major support before the 144,000-140,000 zone, which was last tested in October 2023. A daily close above 155,000 would be the first sign that the bearish momentum has broken. For silver, the 225,000 level is critical: it held as support in late November 2024 and if it breaks, the next floor is around 210,000. The next major trigger for both metals will be the US non-farm payrolls data, due on the first Friday of every month, which influences the dollar and rate expectations.
Source: timesofindia.indiatimes.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
