At 9:15 am, MCX silver March contracts were up 1.36% at ₹1,95,466 per kg, while MCX gold February futures were up 0.72% at ₹1,34,580 per 10 grams.
On Monday, December 15, early deals on the MCX saw a sharp increase in the rates of gold and silver due to encouraging signals from around the world. At 9:15 am, MCX silver March contracts were up 1.36% at ₹1,95,466 per kg, while MCX gold February futures were up 0.72% at ₹1,34,580 per 10 grams.
MCX gold February futures increased by about ₹2,800, or 2.11%, to a record high of ₹1,35,263 per 10 kilos on Friday, December 12. However, following some profit booking, the futures ended 0.82% higher at ₹1,33,551 per 10 grams.
In a similar vein, MCX silver March contracts reached their all-time high of ₹2,01,615 per kg in the previous session, up ₹2,700, or 1.3%. It did, however, conclude with a 3.33% loss at ₹1,92,318 per kilogram despite substantial profit booking.
Monday morning saw gains in both metals as bond yields and the US currency declined. Investors found non-yielding bullion more appealing as the dollar index fell by 0.10% and the benchmark 10-year US Treasury yields crept down to 4.18%.
Since the US Federal Reserve slashed interest rates by 25 basis points on December 10, gold and silver prices have increased significantly. Gold and silver prices have risen sharply this year, largely due to expectations of rate reduction by the US Federal Reserve.
The surge in gold prices this year has also been attributed to central bank purchases, strong inflows into gold and silver ETFs, heightened geopolitical threats, and uncertainty over the state of the world economy as a result of US tariffs.
Up to December 12, domestic spot gold prices increased by around ₹55,800 per 10 grams, or more than 73%. Conversely, spot silver has increased by 126%, or around ₹1,08,000 per kg, this year.
According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, "gold is on track for its strongest annual gain since 1979, driven by robust central bank purchases, strong ETF inflows, safe-haven demand, and a shift by investors away from sovereign bonds and currencies."
Silver and gold: important levels to keep an eye on
According to Trivedi, MCX Gold February futures could remain high, and the next daily resistance is ₹1,35,000 per 10 grams.
In today's session, silver has support at $60.60 and $59.10 and resistance at $63.50 and $65 per troy ounce, while gold has support at $4,300 and $4,274 and resistance at $4,355 and $4,400 per troy ounce, according to Manoj Kumar Jain of Prithvifinmart Commodity Research.
Silver has support at ₹1,90,000 and ₹1,87,700 and resistance at ₹1,95,500 and ₹1,98,000 on the MCX, while gold has support at ₹1,32,200 and ₹1,31,000 and resistance at ₹1,34,800 and ₹1,35,500.
"We suggest buying gold on dips around ₹1,33,000 and ₹1,32,200 range with a stop loss of ₹1,31,000 for the target of ₹1,34,800 and ₹1,35,500, and wait for some corrective dips for initiating fresh long positions in the silver," Jain stated.
Gold has support around $4,265 and $4,245 and resistance at $4,340 and $4,375, according to Rahul Kalantri, VP of commodities at Mehta Equities. Silver's resistance is at $62.65 and $63.15, while its support is at $61.70 and $61.25.
Gold has support between ₹1,32,850 and ₹1,32,150 in INR, while resistance is at ₹1,34,550 and ₹1,35,270, according to Kalantri. Silver has resistance at ₹1,93,810 and ₹1,94,770 and support at ₹1,91,450 and ₹1,90,780.
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