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After Recent Corrections, Is Gold Ready to Shine Again?
Gold and silver prices surged in the domestic futures market on Monday morning (November 3), buoyed by a weakening dollar and strong spot demand, marking a potential rebound after recent corrections. MCX Gold December futures jumped 0.39% to ₹1,21,708 per 10 grams, while MCX Silver December contracts rose 0.69% to ₹1,49,307 per kg around 9:10 am.
Short Covering Sparks Precious Metal Gains
The recent upswing in gold and silver comes as some traders engage in short covering following sharp corrections over the last two weeks. Expectations of further US Federal Reserve (Fed) rate cuts have softened after Chair Jerome Powell’s hawkish comments last week.
The Fed cut interest rates by 25 basis points for the second time this year on October 29, bringing the benchmark rate to a target range of 3.75% to 4.00%. However, Powell indicated that December rate cuts might not occur, which has altered market sentiment.
Meanwhile, the dollar’s slight weakness provided additional support for gold, which had seen significant profit-booking recently. The dollar index eased by 0.10%, contributing to the bullish momentum in precious metals.
Price Movements and Historical Highs
Domestic spot gold prices dropped nearly ₹9,400—over 7% per 10 grams—in the last fortnight. Silver, meanwhile, experienced even steeper declines, falling by nearly ₹22,000, or 13% per kg, during the same period. Profit-taking has been prevalent due to diminishing expectations of US rate cuts and easing US-China trade tensions.
MCX Gold is now down about 8% from its record high, which was ₹1,32,294 per 10 grams on October 17, while MCX Silver December 2025 futures peaked at ₹1,70,415 per kg the same day.
Key Support and Resistance Levels
Market analysts are keeping a close eye on key price levels in today’s session. Manoj Kumar Jain from Prithvifinmart Commodity Research highlighted that gold has support at $3,980 and $3,945, with resistance at $4,054 and $4,084 per troy ounce. Silver shows support at $48.00 and $47.40, while resistance lies at $48.84 and $49.50 per troy ounce. In INR terms, MCX Gold has support at ₹1,20,600 and ₹1,19,800, and resistance at ₹1,22,000 and ₹1,22,700, whereas silver support is at ₹1,47,000 and ₹1,45,500, with resistance at ₹1,50,000 and ₹1,51,500.
Jain suggested buying gold on dips around ₹1,20,400 with a stop loss at ₹1,19,350 targeting ₹1,22,000, and buying silver around ₹1,47,000–₹1,46,000 with a stop loss at ₹1,44,400 aiming for ₹1,50,000–₹1,51,500.
Market Insights from Experts
Jigar Trivedi, Senior Research Analyst at Reliance Securities, expects MCX gold prices for the December expiry to remain range-bound between ₹1,21,000 and ₹1,21,800 per 10 grams.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, highlighted additional support and resistance levels for gold and silver. For gold, support levels are $3,970 and $3,940, while resistance levels stand at $4,045 and $4,075. For silver, support levels are $48.20 and $47.85, with resistance at $49.10 and $49.50. In Indian Rupees (INR), gold support levels are ₹1,20,870 and ₹1,20,480, and resistance levels are ₹1,21,890 and ₹1,22,300, while silver shows support at ₹1,47,450 and ₹1,46,750, with resistance at ₹1,49,340 and ₹1,50,280.
Outlook: Cautious Optimism
With dollar weakness, healthy spot demand, and easing global trade tensions, gold and silver are showing signs of stabilization. However, the Fed’s future monetary policy remains a crucial factor, and traders continue to track key support and resistance levels to gauge market momentum.
As MCX Gold and Silver attempt to recover from recent profit-booking, market watchers suggest that careful attention to technical levels could provide opportunities for strategic positioning in these precious metals.
