Gold and Silver Prices Recover After Sharp Fall on Dip-Buying

Gold and Silver Bounce, but Technical Damage Remains in Focus

Lower-level buying lifted bullion after last week’s sharp sell-off, though both metals remain well below their earlier highs.

A recovery after last week’s sell-off

Gold and silver futures rose on Monday as buying emerged at lower prices, following a sharp sell-off last week. The gains were modest against the scale of the earlier retreat: gold remained near a three-month low, while silver stayed below ₹2 lakh per kg. That makes the session a recovery from recent weakness, rather than clear evidence that the decline has run its course.

On the MCX, the benchmark December gold contract opened ₹277 higher at ₹1,42,301 per 10 grams, against a previous close of ₹1,42,024. It was later trading around ₹1,42,440, up ₹416. December silver opened ₹538 higher at ₹1,96,257 per kg and was later at ₹1,96,375, a gain of ₹656. These are futures prices and can move during the trading session.

Global prices also edged higher

The rebound was visible in international trading as well. Comex gold futures were near $4,025.90 per ounce, compared with a previous close of $4,007.90. Silver was around $54.30 per ounce, up from $53.94. The parallel move in domestic and overseas contracts suggests the session’s firmness was not confined to Indian trading.

Both metals, however, remain far below the highs cited for earlier this year: ₹1,80,779 per 10 grams for MCX gold and ₹4,20,048 per kg for MCX silver. Comex gold had reached $5,586.20 per ounce, while Comex silver had touched $121.79. Those peaks underline the scale of the pullback, but past highs alone do not establish where prices may go next.

Open interest points to position reduction

Ajay Kedia, director of Kedia Advisory, described both metals as undergoing long unwinding—a pattern in which prices and open interest decline as traders reduce existing positions. Gold open interest fell 2.54% to 16,222 contracts alongside a ₹1,285 price decline. Silver open interest dropped 11.35% to 16,877 contracts as prices fell ₹3,880.

That positioning data adds caution to Monday’s bounce. Dip-buying can support prices after a sharp fall, but a durable recovery would need to withstand renewed selling and hold above nearby technical barriers. The data does not, by itself, establish whether traders will rebuild bullish positions.

Key levels traders are watching

The levels cited by Kedia offer a framework for tracking the near-term setup, not a forecast or guarantee. A sustained move through resistance could support further recovery; a break below support may leave prices vulnerable to additional pressure.

• Gold support: ₹1,41,200, followed by ₹1,40,370.
• Gold resistance: ₹1,42,990 and ₹1,43,950.
• Silver support: ₹1,92,470, followed by ₹1,89,230.
• Silver resistance: ₹1,98,640 and ₹2,01,570.

What the rebound means for bullion investors

For Indian investors, Monday’s gains bring attention back to both MCX and global futures, but the sharp retreat and falling open interest make it important to distinguish a short-term bounce from a change in trend. Gold is quoted on the MCX per 10 grams and silver per kilogram, while Comex prices are in dollars per ounce; the units and markets differ, so the figures should not be compared directly without adjustment.

Investor Note: The recovery may attract buyers looking for lower entry points, but the cited support, resistance and open-interest readings indicate continuing near-term uncertainty. Investors should consider their time horizon and risk tolerance rather than treating one session’s gains as confirmation of a lasting rebound.