Gold and Silver Prices Under Pressure Amid US Federal Reserve Interest Rate Decision

The gold and silver prices are expected to remain under pressure in the coming days. According to Abhilash Koikkara, Head - Forex & Commodities, Nuvama Professional Clients Group. The recent hike in the interest rates of the Federal Reserve meeting has added to the volatility in prices.

MCX Gold is likely to remain under pressure in the near term. With prices continuing to trade lower on a weekly basis and pointing to a sideways to bearish setup. This pattern suggests that selling pressure remains dominant in the near term.

With the possibility of sideways bias once the ongoing consolidation phase comes to a halt.

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The key resistance level for gold is 155,000. Which if broken would negate the intermediate bearish bias and signal a resumption of the bullish move. A sustained daily close above this level would confirm that buyers have firmly resumed control and the bullish move is back in place.

The first important support level for gold is 148,000, which if maintained would limit any further downside. A sustained break below this level could extend the decline further toward the 144,000–140,000 zone.

MCX Silver, much like gold, is likely to remain under pressure in the coming sessions, with the overall technical setup continuing to point toward weakness. Remains a key factor influencing precious metals & higher yields & interest tend to reduce the appeal of non-yielding assets like silver.

The immediate resistance level for silver is 242,000, with 248,000 as the next resistance beyond that. A move above this level would confirm the bullish bias and keep the momentum firmly alive &amp. technicals and momentum are both pointing to support the correction phase.

The recent pullback from the highs has led to a strong support at 225,000 for silver. The near-term technical outlook stays cautious as long as prices remain above this support. A firm close below it would shift the bias to negative.

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However, any dips above that mark should attract buyers and keep the broader uptrend intact.

Gold has started off the week, trading with lower lows and taking out the previous week's low, a move that keeps the weekly trend leaning toward further correction. With momentum staying on the negative side, gold looks well-placed to extend its corrective move through the sessions ahead.

MCX Gold Trading Strategy: CMP - Rs 151,900; Target - Rs 144,000; Stop Loss - Rs 155,000. MCX Silver Price Outlook: CMP - Rs 235,200; Target - Rs 225,000; Stop Loss - Rs 242,000.