Prices of precious metals declined sharply last week. Gold ($4,328/ounce) and silver ($67.8/ounce) was down 4.7 and 10 per cent, respectively. In the domestic market, gold futures (August) (₹1,55,594/10 gm) dropped 3.3 per cent and silver futures (July) (₹2,48,537/kg) lost 6.9 per cent.MCX-Gold (₹1,55,594)Gold futures (August) were trading flat for most part of last week. But on Friday, the contract witnessed a strong downtrend, breaching a trendline support and closing below both 21- and 50-day moving averages.The above factors have increased the strength of the bears, which can potentially drag the price further lower to ₹1,52,000 and subsequently to ₹1,49,500. Even if it recovers from the current level, it is likely to be arrested at ₹1,59,000.That said, a breakout of ₹1,59,000 can lift the contract to ₹1,62,800.Trade strategy: Traders can short gold futures (August) at ₹1,57,500. Place stop-loss at ₹1,59,500. Revise this down to ₹1,56,000 when the contract touches ₹1,54,000. Book profits at ₹1,52,000.MCX-Silver (₹2,48,537)Silver futures (July), like gold futures, traded flat until Thursday last week, but fell sharply on Friday. Consequently, the contract has breached the trendline support and the 50-day moving average, both coinciding at ₹2,57,000.Given the prevailing price action, we expect silver futures to see further decline, possibly to ₹2,38,000. But then, before seeing this downswing, the contract might rise to retest ₹2,57,000. A rally past ₹2,57,000 can weaken the bears and open the door for the bulls to gain traction. In this case, the price can rise to ₹2,75,000.Trade strategy: Sell silver futures if the price rises to ₹2,57,000. Keep initial stop-loss at ₹2,65,000. When the contract falls to ₹2,45,000, trail the stop-loss to ₹2,50,000. Book profits at ₹2,38,000.Published on June 6, 2026