Precious metals hit record highs again, posting gains for the ninth straight week. Gold ($4,254/ounce) rose 5.9 percent and silver ($51.90/ounce) rose 3.2 percent. In the domestic market, gold futures (₹1,27,008/10 gram) and silver futures (₹1,56,604/kg) rose 4.7 percent and 6.9 percent respectively.
MCX-Gold (₹1,27,008)
Gold futures hit an all-time high of ₹1,32,294 on Friday before falling to ₹1,27,008. It lost 2 percent in the last session and this has led to the contract forming a bearish engulfing pattern on the daily chart. The sales volume on Friday was also significant.
Considering that the rally has been sharp and the chart is now showing early signs of weakness, we expect gold futures to fall to ₹1,20,000 in the near term. A violation of this can drag the amount to ₹1,19,200.
But if the rally continues and the contract crosses ₹1,32,294, the upside could be extended to ₹1,35,000.
Trading Strategy: Short gold futures (December) at ₹1,28,000. Target and stop-loss can be ₹1,20,000 and ₹1,32,300 respectively.
MCX Silver (₹1,56,604)
Silver futures hit a high of ₹1,70,415 on Friday before falling to post a loss of 6.6 per cent for the session. The chart shows a bearish engulfing pattern and the sell-off saw significant volume.
We predict further moderation in silver futures, possibly to ₹1,44,000. A break below this could lead to a deeper decline towards the ₹1,40,000-1,41,000 price range.
If the bulls regain traction and push the contract above ₹1,70,415, we may see a rise towards ₹1,75,000. Although this is less likely.
Trading Strategy: Sell silver futures (December) for ₹1,61,800. Target and stop-loss can be ₹1,44,000 and ₹1,70,500 respectively.
Published on October 18, 2025
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