Gold and silver prices are expected to stay in focus during the Navratri week as traders monitor key economic indicators, including US inflation data, Treasury yields, and Federal Reserve policy expectations. The precious metals saw a recovery towards the end of last week as the dollar and US bond yields eased, despite ongoing concerns about potential monetary tightening. On the Multi Commodity Exchange (MCX), gold futures for December delivery rose ₹1,893, or 1.27%, to ₹1,51,503 per 10 grams on Friday, supported by fresh positions and firm spot demand. The contract traded in a business turnover of 5,341 lots, with gold gaining around 1.3% over the week.
Silver, on the other hand, traded at ₹2,25,820 per kg on Friday, up ₹65, or 0.03%. The metal also recovered from its early-week decline, although its overall technical trend remains weaker than gold's. The recovery in precious metals followed easing US Treasury yields and a softer dollar, which helped offset concerns over persistent inflation and the possibility of further Federal Reserve rate hikes. In the domestic market, the rupee's weakness near record lows provided additional support to bullion prices by making dollar-denominated commodities more expensive.
According to Ponmudi R, CEO of Enrich Money, both metals have shown signs of recovery after finding buying interest at lower levels. However, the technical outlook differs: gold displays a mildly positive bias, while silver's trend remains weak but shows signs of stabilisation. For MCX gold, the immediate resistance zone is placed at ₹1,52,000, ₹1,52,600, followed by ₹1,54,000, ₹1,54,700. A sustained move above the immediate resistance band could strengthen the recovery and open the way for further gains. On the downside, ₹1,50,000, ₹1,50,700 is the immediate support area.
For MCX silver, the immediate resistance is placed at ₹2,28,000, ₹2,29,000, followed by ₹2,32,000, ₹2,33,000. A sustained move above these levels could improve the recovery momentum. On the downside, ₹2,23,000, ₹2,24,000 is the immediate support zone. Traders will need to watch these key levels closely, as a decisive breakout or breakdown could determine the next directional move in both metals.