Daijiworld Media Network- Mumbai (DD)

Mumbai, Jun 5: Gold and silver prices have gained fresh bullish momentum, buoyed by geopolitical tensions, hopes of a US Federal Reserve rate cut, and a weakening dollar, driving strong safe-haven demand among traders and investors.

Gold recently broke out of a falling channel pattern on the MCX, crossing the key resistance level of Rs 97,700. Currently trading at Rs 98,930, market experts see the next target at Rs 99,900 — its all-time high. As long as gold holds above the crucial support of Rs 97,650, the bullish trend is expected to continue.

Abhilash Koikkara, Head of Forex & Commodities at Nuvama Professional Clients Group, views this breakout as an end to the prior bearish trend, signaling a possible sustained rally ahead. He advises investors to buy near current prices with a stop loss at Rs 97,650 and target Rs 99,900.

Silver is also on a strong upward trajectory, trading at Rs 1,01,500 per kilogram after surpassing its previous peak of Rs 1,00,444. The near-term target is Rs 1,03,700, with a further upside possible at Rs 1,05,000, supported by safe-haven demand and rising industrial use.

Koikkara recommends a bullish stance on silver as well, suggesting buying on dips near Rs 99,700 support. Holding above this level is crucial; a drop below it could trigger a correction.

With current momentum and global economic cues, gold and silver are poised to remain firm in the short term. Traders should maintain a positive outlook with disciplined stop-loss levels, while long-term investors might consider adding to positions during dips, particularly if rate cut expectations strengthen and geopolitical uncertainties linger.