Gold and Silver Prices Fall: How to trade on MCX – Key levels, strategy & targets to watch today

Gold and Silver Price Today: Gold and silver markets witnessed a highly volatile session on Tuesday, with both metals settling lower in domestic and international markets.

According to Manoj Kumar Jain, “Gold and silver are off the day’s low in a highly volatile session amid mixed US economic data. The trend remains volatile.”

International and Domestic Market Overview

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In the international markets, gold December futures closed at $4,066.50 per troy ounce, down 0.20 per cent, while silver December futures ended at $50.521 per troy ounce, down 0.37 per cent.

Domestic markets mirrored the decline, with gold December futures settling at Rs 1,22,640 per 10 grams, a drop of 0.23 per cent, and silver December futures at Rs 1,54,644 per kilogram, down 0.43 per cent.

Jain explained the price movements, “Gold and silver plunged in early trading but recovered from lower levels after the US unemployment claims data was released. Jobless claims surged to 2,32,000 against previous claims of 2,18,000, influencing short-term volatility.”

He also highlighted a key factor supporting precious metals prices, “Record buying by global central banks in September, totalling 64 metric tonnes of gold, is providing support to prices. Sovereign purchases are bolstering the metals despite gains in the US dollar index.”

Technical Levels and Outlook

On the technical side, Jain noted, “Gold is holding its make-or-break level of $3,870 per troy ounce, while silver is maintaining its key support at $45.50 per troy ounce in international markets.” He added that the upcoming US Federal Reserve meeting minutes later this week could set the direction for both metals.

For the week ahead, gold is expected to trade in the range of $3,960–$ 4,180 per troy ounce, and silver between $48.40–$ 52.50 per troy ounce. Jain provided intraday support and resistance levels,

“Gold has support at $4,034–4,010, with resistance at $4,088–4,110. Silver’s support is at $50.00–49.40, while resistance lies at $51.10–51.65 per troy ounce.”

MCX Market Strategy

In the domestic MCX market, he suggested cautious buying strategies, “We recommend buying gold on dips around Rs 1,22,000–1,21,600, with a stop loss below Rs 1,21,100 for targets of Rs 1,23,350–1,24,000.

Similarly, buying silver around Rs 1,53,500–1,52,000, with a stop loss below Rs 1,50,500, could target Rs 1,55,000–1,57,000.”

Overall, precious metals are expected to remain volatile this week, influenced by global economic data, movements in the dollar index, and upcoming FOMC announcements.