Gold prices are attempting a significant comeback following a period of sharp correction, with international gold futures rising to $4,167.34 per ounce on October 15. The domestic market has seen MCX gold futures climb 1.17% to ₹147,558 per 10 grams on the same day.
Investors are closely watching whether this rebound can be sustained and if MCX prices will indeed reach the ₹1.5 lakh per 10 grams mark, as suggested by market analysts.
What's Driving Gold's Recovery?
According to Vandana Bharti, Deputy Vice President of Commodity Research at SMC Global Securities Ltd, gold's recent rally stems from a correction after heavy selling pressure in paper markets. Internationally, the focus is now on the $4,200-$4,220 range, which is considered a crucial zone for determining the next price movement.
However, the full extent of the international recovery might not translate directly into domestic prices. Bharti notes that a strengthening Indian rupee could limit the upside for gold in India, acting as a counterbalancing factor.
For MCX Gold, Bharti anticipates trading within the ₹145,000–₹150,000 range per 10 grams. The ₹1.50 lakh level, therefore, becomes a significant psychological and technical benchmark for traders assessing the rebound's continuation.
Silver's Muted Recovery
While gold shows strong signs of recovery, silver's rebound has been more subdued. MCX silver futures gained 0.61% to ₹209,606 per kilogram on October 15, with international silver futures climbing to approximately $56 per ounce.
Bharti highlights that silver is typically more volatile than gold, leading to sharper price swings in both directions. Despite the current pressure, a recovery towards ₹215,000 per kilogram is not ruled out, indicating potential for future gains, albeit at a slower pace than gold.
Key Levels to Monitor
- International Gold: $4,200–$4,220 per ounce
- MCX Gold: ₹145,000–₹150,000 per 10 grams
- MCX Silver: Potential recovery towards ₹215,000 per kilogram
The future trajectory of precious metals will largely depend on gold's ability to sustain its current rebound and whether silver can build momentum from its modest gains.