Gold and Silver Prices Show Signs of Recovery in India

The Indian market for gold and silver is showing signs of recovery as both metals target higher prices. Abhilash Koikkara, Head - Forex & Commodities at Nuvama Professional Clients Group, notes that gold prices are 'showing some bullish bias' while silver prices are seeing a 'recovery'.

The MCX Gold price has broken out of its consolidation phase and is heading towards the recent swing highs. This points to an intermediate bullish move underway. The base trend for gold remains positive, making any dip in support a buying opportunity rather than a sign of a trend reversal.

The crucial support level to watch this week is 142,500, which aligns with the recent swing low. If this level holds, it could bring buyers back in and cushion the downside. Gold is targeting resistance levels of 148,000 and 152,000 as the immediate resistance levels continue to favour a bullish bias.

The MCX Silver price has stepped out of its consolidation phase and is now aligning with the base trend. A near-term recovery looks well on the cards for silver, which is expected to hold its positive bias and push higher from current levels. The 220,000 level provides strong support for silver and should limit any further weakness.