Gold and silver prices settled on a strong note on Wednesday, supported by growing expectations of further US Federal Reserve rate cuts after weaker-than-expected ADP non-farm employment data, according to Manoj Kumar Jain, Director and Head of Commodity Research, Prithvi Finmart.
In the international markets, gold February futures settled at $4,373.90 per troy ounce, gaining 0.94 per cent, while silver March futures surged 5.65 per cent to close at $66.901 per troy ounce.
Jain noted that silver has created history by crossing the $66 per troy ounce mark on a closing basis, signalling a fresh price breakout.
Domestic bullion prices also ended higher despite a stronger rupee. On MCX, gold February futures settled at Rs 1,34,894 per 10 grams, up 0.36 per cent, while silver March futures jumped 4.89 per cent to close at Rs 2,07,435 per kilogram.
Fed Rate-Cut Hopes and Geopolitical Tensions Support Prices
According to Jain, bullion prices gained momentum after the US. ADP employment data strengthened expectations of additional Fed rate cuts. “Geopolitical tensions between the U.S. and Venezuela, along with robust investment and industrial demand, are also supporting gold and silver prices,” he said.
Silver Outperforms, Gold Near Lifetime High
Jain highlighted that while gold is trading close to its lifetime high, silver has clearly outperformed, registering fresh record levels. “Silver prices could extend their rally in the coming sessions and may test $75–78 per troy ounce in the short term,” he added.
Volatility Likely Ahead of Key Global Events
However, he cautioned that volatility is likely to persist ahead of key global events, including the Bank of Japan’s policy meeting and upcoming U.S. CPI data. Despite the volatility, Jain expects bullion prices to hold critical support levels of $4,140 per troy ounce for gold and $57.20 per troy ounce for silver.
Weekly Trading Range and Key Technical Levels
For the current week, Jain expects gold to trade in the range of $4,220–4,440 per troy ounce, while silver is likely to move between $57.20–70.00 per troy ounce. Immediate support for gold is seen at $4,340–$ 4,300, with resistance at $4,400–$ 4,440. Silver has support at $65.00–$ 63.60 and resistance at $68.20–$ 70.00.
MCX Trading Strategy: Buy on Dips
On MCX, Jain recommends buying gold on dips around Rs 1,34,400–1,34,000 with a stop loss of Rs 1,33,300 for targets of Rs 1,35,500–1,36,200. For silver, he suggests buying on dips in the Rs 2,05,000–2,02,000 range with a stop loss of Rs 1,98,800, targeting Rs 2,10,000–2,14,000.