Gold & silver price prediction today: Will gold prices continue to drop? Top things to watch out for

Gold and silver price prediction today: Gold prices are showing signs of exhaustion, and traders should adopt a cautious approach, says Abhilash Koikkara, Head - Forex & Commodities, Nuvama Professional Clients Group.

He shares his views on gold and silver:

MCX Gold Outlook

MCX Gold has shown signs of exhaustion after its recent rally and appears to have some room for a corrective move on the downside. Prices have been trading in a broad range, and the momentum seems to be cooling off as profit booking sets in. Currently, gold is likely to test the lower range of 117000–115000 levels before finding a strong support base for the next leg of the uptrend. The overall structure remains positive in the medium to long term, but short-term weakness cannot be ruled out.A firm resistance is placed at 122500, and only a sustained close above this level will indicate renewed bullish momentum. Until then, prices may consolidate or drift lower amid global cues and dollar strength. Investors should watch for stability around the 117000–115000 zone, which could act as a crucial accumulation area. Once prices rebound from these supports, a move back toward 122500 and higher levels can be expected.

Traders are advised to remain cautious, adopt a disciplined stop-loss approach, and look for buying opportunities near support zones rather than chasing prices at higher levels. The broader outlook for gold continues to remain positive with healthy fundamentals.

MCX Gold Trading Strategy

MCX Silver Outlook

MCX Silver has been under pressure recently, showing signs of weakness after failing to sustain above key resistance levels. The metal has faced consistent selling at higher levels, indicating that the bulls are losing grip in the short term.

With bearish momentum gaining traction, prices may continue to decline and could tumble toward the 141500 level, which serves as a crucial support zone. A break below this support may trigger further downside, while any recovery attempts are likely to face stiff resistance near 148700 levels.The broader market sentiment for silver remains cautious, influenced by a stronger U.S. dollar, rising bond yields, and subdued demand from industrial users.

Technically, the chart structure suggests that the recent rebound was merely a pullback within a broader corrective phase. Traders should remain vigilant, as volatility is expected to persist.For short-term traders, selling on rallies with a strict stop-loss above 148700 could be a prudent strategy. On the other hand, long-term investors may consider accumulating near the 141500 support zone if prices stabilize. Overall, MCX Silver remains vulnerable to further downside pressure unless it breaks above 148700 decisively, which would indicate a shift in trend and open the door for a potential recovery.

MCX Silver Trading Strategy

(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)