Daijiworld Media Network - New Delhi

New Delhi, Oct 26: Gold and silver prices recovered on Monday on low-level buying following a sharp sell-off, although gold continued to trade near a three-month low amid cautious market sentiment.

On the Multi Commodity Exchange (MCX), December gold futures opened Rs 277 higher at Rs 1,42,301 per 10 grams, compared with the previous close of Rs 1,42,024.

Gold prices rose as much as 0.6 per cent, or Rs 864, to an intraday high of Rs 1,42,888 at 11.50 am. At the latest count, the yellow metal was trading at Rs 1,42,500, up Rs 476, or 0.34 per cent.

December silver futures opened Rs 538 higher at Rs 1,96,257 per kg against the previous close of Rs 1,95,719.

Silver touched an intraday high of Rs 1,97,186, gaining Rs 1,467, or 0.74 per cent. However, it later slipped to Rs 1,95,572, down Rs 147, or 0.08 per cent.

Market experts said MCX gold was trading within support and resistance levels following last week’s decline. The December contract fell nearly 4 per cent during the week to close near Rs 1.42 lakh per 10 grams.

Gold on the MCX was gaining at roughly half the pace of its international counterpart on COMEX and lagging behind silver, which witnessed a sharper rebound from oversold levels, they said.

For gold, immediate resistance is seen in the Rs 1,43,000–Rs 1,43,700 range, followed by Rs 1,45,300–Rs 1,46,000. Immediate support is placed at Rs 1,40,000–Rs 1,41,000.

The Relative Strength Index (RSI), a technical indicator of price momentum, was near 33, approaching oversold territory, while the widening negative histogram on the Moving Average Convergence Divergence (MACD) indicator suggested continuing bearish pressure.

The market outlook remains cautious, with a sustained move above the Rs 1,43,000–Rs 1,43,700 resistance range considered important for stabilising gold prices.

For MCX silver, immediate resistance is placed at Rs 2,00,000–Rs 2,02,000 per kg, followed by Rs 2,06,000–Rs 2,08,000. Support is seen at Rs 1,92,000–Rs 1,94,000, with the next support range at Rs 1,83,000–Rs 1,85,000.

Experts noted that Friday’s long lower price shadow near Rs 1,92,000 indicated an attempt by silver to establish a base. However, the RSI remained deeply oversold at around 25, while the MACD continued below its signal line, indicating that bearish momentum persisted.

In international markets, COMEX gold futures opened at $4,012.20 per ounce, compared with the previous close of $4,007.90. The metal had touched $5,586.20 earlier this year.

Meanwhile, COMEX silver futures opened at $54.29 per ounce against the previous close of $53.94. Silver had reached $121.79 earlier this year.