MCX gold may test Rs 1.39 lakh support, silver outlook remains weak amid global uncertainty: Analysts
Mumbai, July 18
MCX Gold and Silver are expected to remain volatile in the near term as investors assess geopolitical developments in the Middle East, movements in crude oil prices, and the US Federal Reserve's policy outlook, according to market analysts.
Analysts said MCX Gold ended the week on a negative note but managed to stabilise around the key psychological support level of Rs 1,40,000.
They believe a decisive break below this level could accelerate selling pressure and drag prices towards the Rs 1,39,300-Rs 1,38,700 support zone.
"MCX Gold ended the week on a negative note but managed to find support near Rs 1,40,000 and is attempting to stabilise above this key level. A decisive break below Rs 1,40,000 could extend the decline toward the Rs 1,39,300-Rs 1,38,700 support zone," as per the market expert.
"On the upside, immediate resistance is placed at Rs 1,40,700-Rs 1,41,000, followed by Rs 1,42,000-Rs 1,42,700. A sustained move above these resistance zones could strengthen recovery momentum," an analyst stated.
MCX Silver also ended the week with a cautious negative bias, continuing to trade below key resistance levels.
Analysts expect resistance in the Rs 2,17,000-Rs 2,18,000 range, followed by Rs 2,20,000-Rs 2,21,000.
"On the downside, Rs 2,15,000-Rs 2,14,000 remains the immediate support zone, while a break below this area could drag prices toward Rs 2,11,000-Rs 2,10,000," a market expert mentioned.
"Overall, the broader trend remains weak, with sustained strength above key resistance levels needed to signal a meaningful recovery," the analyst stated.
Globally, COMEX Gold also finished the week with a negative bias while attempting to hold above the important $4,000 support level.
Analysts said a break below this mark could trigger fresh selling towards the $3,920-$3,900 zone, whereas a recovery above $4,050-$4,070 could lift prices towards $4,120-$4,150.
COMEX Silver remained under pressure as well, with prices trying to sustain above the $55-$54.50 support area.
Analysts noted that a decisive break below this range could lead to further weakness towards $53, while a move above $56.50-$57 could improve sentiment and potentially drive prices towards $59.
— IANS
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