Gold, silver see profit booking at record high levels: Here are levels for short-term trading

Gold, silver see profit booking from record levels on Monday. 

Gold and silver prices retreated sharply from record highs on Monday as investors booked profits amid easing geopolitical tensions and high volatility.

Gold futures for February delivery on the Multi Commodity Exchange (MCX) slipped nearly 2 percent after approaching record levels, falling to Rs 1,37,646 per 10 grams. Contracts with April and June expiries also declined around 2 percent after hitting fresh all-time highs earlier in the session.

Silver futures for March delivery dropped 8 percent after touching a lifetime high of Rs 2,32,663 per kilogram. Contracts for May and July expiries also erased gains, falling 9 percent and 10 percent, respectively, after hitting new peaks during the day.

Jateen Trivedi, vice-president (research analyst – commodity and currency) at LKP Securities, said gold declined by around Rs 1,500 to Rs 1,38,300 on MCX, while Comex gold fell by nearly $70 to $4,463 amid high volatility.

"Profit booking emerged after Comex failed to sustain above the $4,550 zone, while Rs 1,40,500 acted as a resistance level on MCX. Markets are reassessing positions after the sharp rally. This week, the US Federal Reserve’s meeting minutes will be a key trigger, while the US holiday period could keep volumes thin. Gold is expected to remain volatile in the range of Rs 1,35,000–Rs 1,42,000 in the near term," Trivedi said.

Motilal Oswal said silver remained the focus during the session. After scaling a high of Rs 2,54,853 on MCX, prices witnessed profit-taking and declined by around 1.38 percent, reflecting cautious sentiment in the precious metals segment.

Ashika Institutional Equities said gold and silver surged over the past year on the back of macro stress, structural demand, monetary policy shifts and geopolitical unrest.

"Silver, apart from safe-haven demand, was also supported by industrial demand and physical tightness. ETF inflows, speculative positioning, currency movements and global growth prospects will influence prices in the near term," the brokerage said.

Ajay Menon, managing director and chief executive officer at Motilal Oswal Financial Services, said the firm recommends buying MCX silver around Rs 2,30,000 with a stop-loss below Rs 2,22,000 and targets of Rs 2,50,000 and Rs 2,55,000. For gold, it recommends buying around Rs 1,37,000 with a stop-loss below Rs 1,35,500 and a target of Rs 1,39,000.

Nirpendra Yadav, senior commodity research analyst at Bonanza, said gold has strong support near Rs 1,35,000 per 10 grams on MCX, while silver has support around Rs 2,25,000 per kilogram, which could act as demand zones during price corrections.

Meanwhile, copper futures for January delivery fell 13 percent to Rs 1,211.05 per kilogram after hitting a record high of Rs 1,392.95 per kilogram. Contracts with February and March expiries also slipped into the red after touching new highs.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.