Gold hits 2-week high, silver surges—What should investors do now? Key levels & targets inside

Gold and silver witnessed strong gains on Monday, supported by optimism around the potential end of the US government shutdown and expectations of possible rate cuts by the Federal Reserve in December.

The precious metals market remained volatile, reflecting investor sentiment and safe-haven demand.

International Market Performance

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In international markets, gold December futures closed at $4,122 per troy ounce, marking a 2.80 per cent rise, while silver December futures settled at $50.311 per troy ounce, up 4.50 per cent.

Domestic Market Trends

Domestic markets mirrored the global trend, with gold December futures closing at Rs 1,23,970 per 10 grams, gaining 2.40 per cent, and silver December futures at Rs 1,53,691 per kilogram, rising 4.04 per cent.

Analyst Commentary

“Gold and silver posted solid gains on the prospects of ending the US shutdown and possibilities of Fed rate cuts in December policy meetings. Profit-taking in the dollar index and safe-haven buying also supported both precious metals,” said market analyst Manoj Kumar Jain.

Gold recently reached a two-week high, crossing the $4,100 per troy ounce mark, while silver surged to a three-week high above $50 per troy ounce.

Technical Levels

Key technical levels indicate that gold is holding its make-or-break level at $3,870, while silver remains above its crucial support of $45.50 per troy ounce.

Looking ahead, volatility is expected to continue, driven by fluctuations in the dollar index and global financial markets, especially ahead of the upcoming US inflation data.

Gold is expected to trade in the range of $3,960–$4,220 per troy ounce this week, with support at $4,084–$4,050 and resistance at $4,160–$4,200.

Silver is likely to trade between $47.00–$52.50 per troy ounce, supported at $49.70–$49.20 and facing resistance at $50.84–$51.70 per troy ounce.

MCX Support and Resistance Levels

On the MCX, gold is trading with support at Rs 1,22,740–1,22,000 and resistance at Rs 1,25,000–1,26,650, while silver is seeing support at Rs 1,52,200–1,50,800 and resistance at Rs 1,55,500–1,58,000.

Analysts suggest buying gold and silver on dips, with gold expected to test Rs 1,26,000 and silver potentially reaching Rs 1,58,000 in the next 2–3 sessions, provided key support levels hold.