Daijiworld Media Network - Mumbai
Mumbai, Feb 26: Gold futures continued to display strength on the domestic commodities market, with analysts maintaining a positive outlook as prices hold above crucial support levels. Silver, too, remains on a constructive path, though it is approaching an important resistance zone that could determine its next move.
According to Abhilash Koikkara, Head – Forex & Commodities, Nuvama Professional Clients Group, gold on the Multi Commodity Exchange of India (MCX) is sustaining a sideways-to-bullish trend on the weekly chart after rebounding from recent lows.
Gold has formed a base near a rising trend line, indicating strong underlying support. Analysts note that as long as prices stay above the recent swing lows, the broader structure remains positive. The Rs 1,57,000 level is seen as a key support area for the coming sessions, as it coincides with the previous week’s high, enhancing its technical significance.
Market experts believe any dip towards this zone could invite fresh buying interest, limiting downside pressure. With momentum indicators showing constructive signals, gold appears well-positioned to test the Rs 1,70,000 mark in the near term.
The overall sentiment remains favourable, with price action stabilising within a broader consolidation band, suggesting room for further upside if support levels are protected.
Gold Trading Strategy (MCX)
CMP: Rs 1,61,000
Target: Rs 1,70,000
Stop Loss: Rs 1,57,000
Silver approaches resistance zone
Silver has also rebounded after defending its recent swing low for three consecutive weeks. The metal started the week on a firm footing, moving above the prior weekly high and reinforcing its ongoing sideways-to-bullish momentum.
Immediate support is placed at Rs 2,55,000. A decisive break below this level could weaken the positive bias. However, as long as prices hold above this support, pullbacks are likely to be viewed as buying opportunities.
On the upside, silver is expected to challenge the Rs 2,80,000 level, which coincides with the 30-day EMA and acts as a significant resistance zone. A sustained move beyond this level would further strengthen the bullish outlook in the medium term.
Silver Trading Strategy (MCX)
CMP: Rs 2,67,400
Target: Rs 2,80,000
Stop Loss: Rs 2,55,000
Overall, both precious metals continue to trade with a positive undertone, with gold showing relatively stronger momentum while silver prepares to test higher resistance levels.