Gold, Silver Prices Face Pressure Amid Fed Rate Hike
According to Abhilash Koikkara, Head of Forex & Commodities at Nuvama Professional Clients Group, gold and silver prices are expected to remain under pressure in the coming days. This is due to the negative momentum in the market, which suggests that selling pressure remains dominant in the near term.
The US Federal Reserve's recent interest rate hike has added to the volatility in prices, with gold trading at Rs 151,900 and silver at Rs 235,200 on the MCX. The technical setup for both metals points towards weakness, with a sideways to bearish setup for gold and a sideways to negative bias for silver.
The key support levels for gold are 148,000 and 144,000, while the resistance level is 155,000. For silver, the strong support level is 225,000, while the immediate resistance is at 242,000.
Koikkara advises traders to maintain a cautious approach, with a stop-loss of Rs 155,000 for gold and Rs 242,000 for silver. The target prices are set at Rs 144,000 for gold and Rs 225,000 for silver.