Daijiworld Media Network - Mumbai
Mumbai, Jul 18: Gold and silver futures on the Multi Commodity Exchange (MCX) are likely to witness continued volatility in the coming sessions as investors closely track geopolitical tensions in the Middle East, fluctuations in crude oil prices and expectations surrounding the US Federal Reserve's monetary policy, market analysts said.
According to analysts, MCX Gold ended the week in negative territory but managed to hold above the crucial psychological support level of Rs 1,40,000, indicating that buyers are still defending this zone.
They cautioned that a sustained fall below this level could intensify selling pressure and push prices towards the Rs 1,39,300-Rs 1,38,700 support range.
On the upside, analysts identified Rs 1,40,700-Rs 1,41,000 as the immediate resistance zone. A breakout above this level could pave the way for further gains towards Rs 1,42,000-Rs 1,42,700, signalling stronger recovery momentum.
Meanwhile, MCX Silver also closed the week with a weak undertone, continuing to trade below important resistance levels.
Market experts expect silver to face resistance in the Rs 2,17,000-Rs 2,18,000 range, followed by a stronger hurdle between Rs 2,20,000 and Rs 2,21,000.
On the downside, the immediate support for silver is seen between Rs 2,15,000 and Rs 2,14,000. A break below this zone could trigger additional selling and drag prices towards the Rs 2,11,000-Rs 2,10,000 range.
Analysts noted that the broader trend for both precious metals remains weak, adding that a sustained move above key resistance levels is essential to confirm a meaningful recovery.
In the international market, COMEX Gold also ended the week under pressure while attempting to remain above the key $4,000 support level.
A breach below this mark could lead to fresh selling, with prices potentially declining towards the $3,920-$3,900 zone. Conversely, a recovery above $4,050-$4,070 could improve sentiment and drive gold towards the $4,120-$4,150 range.
COMEX Silver also remained under selling pressure, with prices hovering above the $55-$54.50 support area.
Analysts said a decisive break below this support could result in further weakness towards $53, while a sustained move above $56.50-$57 may revive bullish sentiment and open the door for a rally towards $59.