Gold prices tumble below Rs 1.38 lakh/10 gms, silver remains firm. What should investors do now?

Gold and silver opened on contrasting notes in Thursday’s session, reflecting a mix of technical pressures and global macro drivers. While gold February futures slipped Rs 324 to trade at Rs 1,37,685 per 10 grams, silver March contracts gained Rs 500, hovering at Rs 2,51,105 per kg on the Multi Commodity Exchange (MCX).

The move follows a volatile week for bullion, with US labor data and dollar strength pressuring prices.

Gold and silver prices ended Wednesday’s session on a weak note across both domestic and global markets, weighed down by stronger U.S. economic data and a rebound in the dollar.

On the Multi Commodity Exchange (MCX), gold February futures closed at Rs 1,38,009 per 10 grams, down 0.7%, while silver March futures saw a sharper decline, settling at Rs 2,50,605 per kg, down 3.17%.

The precious metals came under pressure after the U.S. ADP non-farm employment data showed a surprise surge of 41,000, pointing to a resilient job market. In parallel, the U.S. Dollar Index (DXY) regained strength and was last seen hovering near 98.69, up 0.01 points or 0.01%, capping gains for gold and silver.

However, not all data was unsupportive. The JOLTS report reflected a minor dip in new job openings compared to expectations, which offered some cushion to gold and silver at lower price levels, said Manoj Kumar Jain, of Prithvifinmart Commodity Research.

In addition, continued central bank buying has helped provide a floor. The People’s Bank of China, for instance, extended its gold buying spree for a 14th straight month, having accumulated 42 metric tons since November 2024—part of a broader push toward de-dollarization amid global uncertainty.

“We are witnessing elevated price swings in both metals,” said Jain. “But technically, silver is expected to hold its support near $65 per troy ounce, while gold may find stability around $4,240 per troy ounce on a closing basis.”

Support: Rs 1,37,200 – Rs 1,36,000 Resistance: Rs 1,38,800 – Rs 1,39,500

Support: Rs 2,46,600 – Rs 2,42,000Resistance: Rs 2,54,000 – Rs 2,58,800

He recommends placing a stop loss below Rs 1,36,000 in gold and below Rs 2,46,000 in silver for all long positions. If these levels hold through the week, a strong upward move in both metals could be seen in the upcoming sessions.

Standard gold (22 carat) prices in Delhi stand at Rs 1,04,384/8 grams while pure gold (24 carat) prices stand at Rs 1,12,496/8 grams.

Standard gold (22 carat) prices in Mumbai stand at Rs 1,03,856/8 grams while pure gold (24 carat) prices stand at Rs 1,11,920/8 grams.

Standard gold (22 carat) prices in Chennai stand at Rs 1,03,120/8 grams, while pure gold (24 carat) prices stand at Rs 1,11,024/8 grams.

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,03,248/8 grams while pure gold (24 carat) prices stand at Rs 1,11,224/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)