Gold and Silver Prices Show Bullish Bias Ahead of Key Resistance Levels

Gold and silver prices are showing a near-term bullish bias, according to Abhilash Koikkara, Head - Forex & Commodities at Nuvama Professional Clients Group. Gold is currently targeting 162,000 as its next meaningful resistance.

The MCX Gold price has entered a consolidation phase after breaking out of the descending triangle formation, but prices remain above the trendline that triggered the breakout. This keeps the near-term trend in the bullish bias.

Gold's key support level is at 149,000, which was its breakout and last week's key support. Any dip towards this zone should attract fresh buyers and limit the downside.

Silver, on the other hand, is retracing towards the breakout zone from the descending triangle formation, presenting a buying opportunity rather than a reversal. The current move can be seen as a healthy retest of the breakout.