Gold and silver prices in India are expected to continue their upward trajectory, despite potential periods of correction and consolidation, according to a leading market expert. Abhilash Koikkara, Head of Forex & Commodities at Nuvama Professional Clients Group, maintains a positive outlook for both precious metals, viewing any dips as potential buying opportunities for investors.
MCX Gold Outlook: Correction Seen as Buying Chance
After hitting a record peak of ₹140,465, MCX Gold has seen a retreat. However, Koikkara emphasizes that the broader trend remains firmly positive. He interprets the current pullback as a healthy correction and a chance to enter the market. The crucial level to watch is the ₹132,000 mark, which represents the breakout point from a previous swing high.
As long as prices hold above this ₹132,000 support, the overall structure for gold is considered bullish. Any price decline towards this zone is likely to attract fresh buying interest, limiting further downside. On the higher side, the expert sees MCX Gold advancing towards the ₹140,000 level again in upcoming trading sessions.
A sustained move above intermediate resistance could reinforce positive sentiment and lead to an extended upward move. The bullish view will only be negated if there is a clear and decisive break below the key ₹132,000 support.
MCX Gold Trading Strategy
Current Market Price (CMP): ₹135,600
Target: ₹140,000
Stop Loss: ₹132,000
MCX Silver Outlook: Consolidation Before Next Leg Up
Similar to gold, MCX Silver also scaled a historic high before undergoing a correction. Despite this pullback, prices continue to trade with a positive bias. Koikkara anticipates a phase of consolidation around recent highs, which typically indicates a temporary balance between buyers and sellers.
A breakout from this consolidation pattern could trigger an accelerated price move as the prevailing bullish trend resumes. The immediate and strong support base for silver is placed near the ₹221,000 level. Holding above this weekly support is critical for maintaining the bullish bias.
On the upside, MCX Silver has the potential to climb towards the ₹260,000 mark in the near to medium term. This target aligns with the extension of the previous upward move and the underlying market momentum. The overall trajectory is expected to stay positive as long as prices remain above the ₹221,000 support.
MCX Silver Trading Strategy
Current Market Price (CMP): ₹237,500
Target: ₹260,000
Stop Loss: ₹221,000
Bottom Line for Investors
The technical structure for both gold and silver remains constructive, favoring a continuation of the current uptrend. Market participants are advised to watch the identified support levels closely. Dips towards these supports could offer strategic entry points, provided the broader market sentiment and momentum indicators stay supportive. As with all market views, investors should consider their risk appetite and consult with financial advisors before making trading decisions.
(Disclaimer: The recommendations and views expressed are those of the individual expert and do not represent the views of The Times of India.)
