Gold and silver prices continued to face pressure on the Multi Commodity Exchange this week, extending their recent correction. However, the broader trend remains positive, with analysts advising investors to watch key support levels rather than treat the current decline as a confirmed trend reversal.

Abhilash Koikkara, Head of Forex and Commodities at Nuvama Professional Clients Group, said gold could see further weakness in the near term, while silver is expected to find support around Rs 2.25 lakh.

MCX gold price outlook

MCX gold has continued its decline from the previous week and remains under pressure in the current trading week. The recent price action points to an intermediate bearish bias, although the broader trend remains positive.

The Rs 1.48 lakh level is the key support to watch. This level corresponds with the breakout zone from the earlier formation and the current weekly moving average.

A close below Rs 1.48 lakh could lead to a deeper correction towards Rs 1.44 lakh. On the other hand, the current decline could provide an opportunity for accumulation if the broader positive trend holds.

On the upside, Rs 1.55 lakh is the important resistance level. A sustained daily close above this mark would weaken the current bearish bias and signal a possible return of bullish momentum.

Gold began the week by recording lower lows and moving below the previous week's low. With momentum remaining negative, the metal could continue its corrective phase in the sessions ahead.

MCX gold trading strategy

Current market price: Rs 1,50,300

Target: Rs 1,44,000

Stop loss: Rs 1,55,000

MCX silver price outlook

Silver is also undergoing a correction after giving up the gains accumulated since the beginning of August. Prices have ended lower for two consecutive weeks and remain within a broad consolidation range.

The short-term outlook for silver is sideways to negative, although the longer-term setup continues to favour the upside.

The Rs 2.25 lakh level has emerged as the key support for the week. Holding above this level could attract buyers and keep the broader upward trend intact.

A decisive close below Rs 2.25 lakh would weaken the technical outlook and could shift the short-term bias further towards the downside.

On the resistance side, Rs 2.42 lakh is the immediate level to watch, followed by Rs 2.46 lakh. A move above Rs 2.46 lakh would strengthen the bullish outlook and indicate that upward momentum is returning.

For now, silver is expected to remain in its corrective phase, with the Rs 2.25 lakh support likely to be closely watched by traders.

MCX silver trading strategy

Current market price: Rs 2,33,200

Target: Rs 2,25,000

Stop loss: Rs 2,40,000

Disclaimer: The trading recommendations and views cited in this article are those of the expert quoted in the source material. They do not represent the views of Indian Business Today. Investors should consider their own financial circumstances and risk tolerance before making investment decisions.