Gold prices saw a decline of over 1% in the domestic futures market on Monday, as profit booking at higher levels and weak global cues weighed on the precious metal. This drop followed a recent rally that had pushed prices to a three-week high.
In international markets, gold prices retreated as investors cashed in on recent gains. Traders also adjusted their expectations for Federal Reserve rate cuts, awaiting further data to assess the outlook for interest rates.
Geopolitical tensions, particularly the ongoing Russia-Ukraine conflict, have continued to support gold, driving demand for the metal as a safe-haven investment amid renewed concerns over nuclear risks.
Experts suggest that gold is likely to trade within a range of ₹77,000–₹78,300 on the Multi Commodity Exchange (MCX), with increased volatility anticipated. “For now, gold is expected to fluctuate within this range, and market participants should be prepared for heightened volatility,” said Jateen Trivedi, VP of Research at LKP Securities.
The sharp rally in the stock markets, with the Sensex and Nifty 50 both surging more than 1% after strong gains of over 2% in the previous session, also put pressure on gold prices.
Expert Strategies for MCX Gold
Commodity experts have outlined their strategies for trading gold in the current market conditions. Manoj Kumar Jain, head of Prithvifinmart Commodity Research, recommended buying gold on dips around ₹77,300, with a stop loss at ₹77,040 and a target of ₹78,000. Jain also suggested buying silver on dips around ₹90,300, with a stop loss at ₹89,650 and a target of ₹91,800.
In terms of technical levels, Jain noted that gold has support between $2,694 and $2,670 per troy ounce, with resistance at $2,728 to $2,745. On the MCX, gold has support at ₹77,330–₹77,040 and resistance between ₹77,880 and ₹78,220. Silver support levels were identified at ₹90,150–₹89,500, with resistance at ₹91,400–₹92,200.
Renisha Chainani, Head of Research at Augmont – Gold For All, emphasized that the ongoing Russia-Ukraine conflict, now in its 1,000th day, continues to influence the bullion market significantly.
Rahul Kalantri, VP of commodities at Mehta Equities, provided additional support and resistance levels for both gold and silver. Gold has support at $2,682–$2,667 and resistance between $2,722 and $2,735. Silver support lies between $30.82 and $30.65, with resistance at $31.28–$31.45. In the Indian market, gold has support at ₹77,380–₹77,150 and resistance at ₹77,850–₹78,040, while silver’s support is at ₹90,050–₹89,450, with resistance between ₹91,420 and ₹91,980.
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