Gold Prices Surge 1%, Silver Soars 4% on MCX; Timing for Investment Optimal?

Gold Prices Rise Amid Global Trend, But Experts Warn Against Aggressive Buying

On Tuesday, March 31, gold and silver prices saw a significant increase on the Multi Commodity Exchange (MCX) due to value buying amidst a positive global trend. Gold prices rose by over 1% in opening deals, while silver prices jumped by over 3%. However, despite this brief surge, both precious metals appear set to end the month on a negative note.

According to the MCX data, the MCX gold June futures rose by more than ₹1,900, or 1.30%, to ₹1,49,596 per 10 grams. Similarly, the MCX silver jumped by ₹8,400, or nearly 4%, to ₹2,37,402 per kg on Tuesday. In the international market, U.S. gold futures for June delivery gained by 2% to $4,649.26.

Despite the recent correction in gold prices, experts warn that it is not the ideal time to go aggressive on the yellow metal. According to Vandana Bharti, the head of commodity research at SMC Global Securities, gold is currently testing a critical support zone between ₹1,42,000 and ₹1,44,500. A breach of this zone could trigger a deeper slide toward ₹1,36,800.

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Experts believe that strategic investors should prioritize gradual accumulation over aggressive buying while the market searches for a definitive bottom. Bharti suggests that a recovery toward ₹1,48,500– ₹1,54,000 remains likely if support holds, but a move below ₹1,42,000 would signal further technical weakness. Jigar Trivedi, Senior Research Analyst at IndusInd Securities, also believes that aggressive buying at current levels is not ideal. He suggests a staggered approach with buying zones between ₹1,30,000– ₹1,25,000 and additional accumulation near ₹1,20,000.