Gold and Silver Retreat Before Expected Rally Resumes
Gold and silver prices hit fresh all-time highs in early October before entering a cooling-off phase following the US Federal Reserve’s interest rate decision and a stronger US dollar. Both precious metals are expected to resume their long-term uptrend after a brief consolidation period.
Key Takeaways
- Gold and silver reached record highs in October before pulling back
- Federal Reserve policy and dollar strength contributed to the retreat
- Long-term uptrend remains intact with clear price targets
- Consolidation phase expected to last several weeks before next rally
Global Market Performance
Comex gold surged past the psychological $4,300 mark earlier in October, eventually closing the month at $4,013.4 with a 3.24% gain. Comex silver gained 3% to settle at $48.25. The pullback was warranted as prices were extremely overbought in the short term, with recent consolidation addressing this overbought scenario.
Price Targets and Support Levels
Comex Gold: The long-term trend remains positive with next targets at $4,450-4,500. A fall below immediate support at $3,820 would signal extended consolidation.
Comex Silver: Expected to consolidate for a few more weeks before resuming uptrend toward $57-59 targets. A break below $45 could prolong the consolidation phase.
Domestic Market Trends
MCX gold crossed the psychological ₹1,30,000 level in mid-October before cooling off. The domestic gold price gained 3.4% to settle at ₹1,21,284 per 10 grams. The recent pullback is likely to sustain for several weeks before the long-term uptrend resumes, with eventual targets at ₹1,38,000-₹1,40,000 range.
MCX silver recorded a 4.2% monthly gain, settling at ₹1,48,399 per kg after correcting from a high of ₹1,70,415. The silver price is expected to consolidate in a range before resuming its upward trajectory toward targets of ₹1,78,000-₹1,82,000.
Both precious metals are positioned for continued near-term consolidation before their long-term bullish trends reassert themselves, offering potential entry points for investors during this pullback phase.
