MCX Gold surge to ₹1.2 lakh per 10 gram amid US government shutdown and fall in Japanese Yen; check trade setup

Market recap (as of 4:00 pm)

• Gold 5 Dec Futures: ₹1,19,919/ 10 gram (▲ 1.5%)
• Silver 5 Dec Futures: ₹1,47,700/ 1 kg (▲ 1.3%)
• Crude Oil 20 Oct Futures: ₹5,515/ 1 BBL (▲ 1.4%)

Technical view

Gold prices continued their upward rally, breaching the ₹1,20,000 mark. The yellow metal is maintaining strength above both the 21-day and 50-day exponential moving averages (EMAs). Despite the strong trend, short-term long trades now present an unfavourable risk-reward setup. On MCX, key support lies near ₹1,15,000, and as long as prices hold above this level, the bullish momentum is likely to remain intact.

MCX Silver opened Monday’s session with strong bullish momentum, climbing to a new high of ₹1,47,977. The metal continues to trade comfortably above its 21-day and 50-day EMAs, confirming the prevailing uptrend. However, with prices edging into overbought territory, the near-term outlook turns cautious as the risk-reward profile for fresh long positions becomes less attractive.

MCX Crude oil future staged a strong rebound from the ₹5,400 support zone, highlighting renewed buying interest at lower levels. Despite this recovery, the broader trend remains weak as prices continue to face resistance near ₹5,800 and trade below both the 21-day and 50-day EMAs. This suggests that the short-term outlook for crude oil still lacks strength, with bears maintaining an upper hand unless a clear breakout occurs above resistance.

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