Gold and silver prices climbed in the domestic futures market on Friday morning, 21 August, amid positive global cues and healthy spot market demand. MCX gold October futures were 0.17% up at ₹1,59,700 per 10 grams, while MCX silver September contracts were 0.48% up at ₹2,44,400 per kg around 9:15 PM.
Precious metal prices climbed in the domestic market, mirroring the trend in the US markets, where gold prices were on track for a third consecutive weekly gain, supported by the dollar’s weakness and the U.S. Treasury’s bond buyback announcement.
The dollar index declined by 0.20%, looking set to end lower for the week, making the greenback-backed yellow metal cheaper for buyers in other currencies.
US 30-year bond yields looked set to end the week lower after the US Treasury on Wednesday announced that it would double the size of buybacks on longer-dated debt over the next quarter to at least $4 billion per operation.
Meanwhile, the US-Iran conflict remains a key headwind for gold prices. US Vice President JD Vance on 20 August (local time) said that the war with Iran has entered a ‘new phase,’ with the Trump administration increasingly relying on economic pressure rather than further large-scale military action.
“The US Treasury’s decision to increase long-dated bond buybacks initially pushed yields lower, supporting bullion, but yields subsequently rebounded as fiscal concerns intensified following US debt surpassing $40 trillion,” said Ravi Singh, Chief Research Officer at Master Capital Services.
“The Fed’s July minutes showed that many policymakers could favour rate hikes if inflation remains elevated, while Middle East tensions continue to cloud the inflation outlook. Despite these headwinds, strong price action and persistent geopolitical uncertainty continue to keep the outlook positive for gold,” said Singh.
Gold and silver prices: Key levels to watch
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, MCX gold has support at ₹1,58,000 and ₹1,56,650 and resistance is at ₹1,60,600 and ₹1,61,800, while silver has support at ₹2,41,000 and ₹2,38,800 and resistance is at ₹2,46,600 and ₹2,50,000.
“We suggest buying gold on dips around ₹1,58,500 and ₹1,57,000 with a stop loss below ₹1,55,500 for the target of ₹1,60,600 and ₹1,61,800 and buying silver around ₹2,41,000 and ₹2,39,000 with a stop loss below ₹2,35,500 for the target of ₹2,46,600 and ₹2,50,000,” said Jain.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, believes MCX gold October may trade with a positive undertone and ₹1,60,000- ₹1,60,200 are resistance for now.
According to Singh, MCX gold futures continue to form higher highs and higher lows, maintaining strong bullish momentum after the recent trendline breakout.
“Prices are now advancing towards the next major resistance near ₹1,64,000, while the breakout zone around ₹1,56,000 has shifted into immediate support. As long as prices sustain above this level, the buy-on-dips strategy remains intact, with the broader structure favouring further upside,” said Singh.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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