Precious metals like gold and silver saw a rise in prices this week due to escalating geopolitical tensions in the Middle East, leading to safe-haven buying and increased volatility in the commodities market. Despite occasional pullbacks and profit-taking, the trend for these metals remains bullish.
Gold futures on MCX continued their upward movement, surpassing the Rs 1,65,000 mark and trading at Rs 1,69,880. Silver futures on MCX also showed positive momentum, breaching Rs 2,85,000 and nearing the Rs 3,00,000 level amidst heightened volatility.
According to Ponmudi R, CEO of Enrich Money, both gold and silver approached record highs before experiencing minor corrections, while crude oil prices surged due to concerns over supply disruptions. Traders are actively participating near key breakout levels, emphasizing the importance of disciplined risk management in the current volatile market.
Momentum indicators indicate a strong trend for gold, potentially pushing it towards Rs 1,70,000 if support levels hold. On the other hand, a drop below Rs 1,57,000 could lead to corrective pressure towards Rs 1,50,000. For silver, the range of Rs 2,55,000–Rs 2,65,000 is now a significant demand zone, with the possibility of prices extending to Rs 3,00,000–Rs 3,05,000. However, a decline below Rs 2,60,000 might trigger a short-term consolidation phase.
Ponmudi highlighted the importance of cautious trading around tested support zones, given the prevailing macroeconomic and geopolitical risks affecting market sentiment. Meanwhile, COMEX gold futures remained firm this week, settling between $5,158 and $5,181, an increase from the previous close. COMEX silver futures also displayed strength, closing around $84.31 after reaching highs of $85.34 and lows of $81.79.
