Precious Metals Rally Continues Amid Positive Outlook

Precious metals saw significant gains last week as gold and silver surged. Gold reached $4,342/ounce, an increase of 7.3%, while silver rose to $63.90/ounce, a 10.3% gain in the international market. Similarly, in India's domestic market, gold futures (₹1,51,820/10 gm) and silver futures (₹2,31,466/kg) saw gains of 5.9% and 6.6%, respectively.

The MCX-Gold contract, which had a muted opening last Monday, gained traction and broke through the resistance at ₹1,47,000. The price is now above both its 21- and 50-day moving averages. The short-term outlook appears positive for gold futures, with a possible rise to ₹1,58,000.

However, before reaching this level, the contract may see a minor correction in price to ₹1,49,000. In case gold futures decline and breach the resistance-turned-support at ₹1,47,000, it can extend its downswing to ₹1,43,000.