Tremendous rise in gold and silver: Silver becomes costlier by Rs 8500, expected to reach these levels next week!

New Delhi: Gold and silver prices have once again shown a strong rise in the futures market. Inflation data in the US being weaker than expected has increased the chances of the Federal Reserve cutting interest rates, which has restored investor confidence in precious metals. On Friday (March 5), a huge rise of 3.62% was recorded in silver prices on MCX, which reached Rs 2,44,999 per kg with a jump of about Rs 8,564 per kg. Similarly, gold for April delivery saw a slight rise of 0.2% (Rs 305) and closed at Rs 1,56,200 per 10 grams.

Recovery phase in global market also

Gold and silver made a spectacular comeback after heavy selling in the previous session at the international level. Spot silver rose 2.1% to $77.27 an ounce, while gold gained 2.33% to trade around $5,063 per 10 grams. Gold prices overall are up more than 1% this week. The recovery came after bullion fell nearly 3% on Thursday, when prices hit their lowest in nearly a week.

What will be the future trend of gold?

According to experts, the level of Rs 1,50,000 per 10 grams remains a strong support zone for gold, where both physical buying and flow of investors are active. If prices sustain above Rs 1,60,000 continuously, the bullish momentum may intensify and target Rs 1,65,000 to Rs 1,70,000 in the next week or medium term. There appears to be little risk of a major decline unless COMEX Gold’s structural support cluster is broken.

Possibility of further rise in silver

MCX Silver is forming a durable base in the strong support zone of Rs 2,33,000-2,35,000 per kg. Despite the recent volatility, the downside pressure seems to be weakening, indicating absorption in the price action. If prices breakout above Rs 2,65,000, a bigger rally towards Rs 2,80,000 per kg is possible in the medium term. Silver is getting strong support due to global supply tightness and industrial demand (solar, electronics etc.).

Overall outlook

Due to global uncertainties, weak dollar and expectation of Fed rate cut, the bullish trend in gold and silver may continue. Investors should look for buying opportunities on dips, but keep an eye on support levels. Further price fluctuations are possible next week, but the overall bullish sentiment seems strong.