Bullion Cues: Rally may falter

Gold ($4,194.70/ounce) and silver ($60.40/ounce) appreciated 1.3 and 0.7 per cent respectively. In the domestic market, gold futures (₹1,51,499/10 gm) gained 0.7 per cent whereas silver futures (₹2,25,755/kg) was down by a marginal 0.1 per cent. MCX-Gold (₹1,51,499) Gold (Dec) futures has been trading flat recently.

Although the contract gained over 1 per cent on Friday, there are key resistance levels ahead that can cap the rise. The nearest hurdle is at ₹1,54,000. If this level is breached, the bulls will gain strength, possibly lifting the price higher to ₹1,60,000.

Resistance above ₹1,60,000 is at ₹1,65,000. However, if gold futures falls from the current level, it can find support at ₹1,48,000. A breakdown below this can open the door for a fall to ₹1,44,000.

The support below ₹1,44,000 is at ₹1,40,000. Strategy: Traders can initiate short position on gold (Dec) futures at ₹1,53,000. Keep stop-loss at ₹1,56,000.

Book profits at ₹1,44,000. MCX-Silver (₹2,25,755) Silver (Dec) futures saw a decline and made a low of ₹2,19,801 on Thursday. However, it rallied over 2 per cent on Friday, recouping the loss.

Nevertheless, the contract remains below an important resistance at ₹2,30,000. So, as long as this level holds, silver futures will retain the bearish inclination. In case silver futures breaks out of ₹2,30,000, it can extend the rally to ₹2,42,000, a resistance.

Subsequent barrier is at ₹2,50,000. On the other hand, if the contract resumes the fall, it can touch ₹2,19,000, an important base. A breach of this can intensify the sell-off, possibly leading to a swift fall to ₹2,10,000.

Strategy: Sell silver (Dec) futures at ₹2,29,000 and place a stop-loss at ₹2,33,000. Book profits at ₹2,20,000. Published on October 10, 2026