Gold can rise 5% to Rs 75,000; Silver by 2.5% to Rs 85,000, charts suggest

The MCX Gold futures have scaled new highs in the last 9 trading sessions, and surged 8.5 per cent. Charts suggest some consolidation likely ahead, as technical indicators are in overbought zone.

Commodities such as Gold and Silver have rallied sharply in the last two weeks amid rise in geopolitical crisis and hopes of interest rate cut in the US.

Gold futures in the international market, rallied from $2,170 per ounce to $2,384 per ounce - up 9.9 per cent in the last three weeks. Meanwhile, Silver futures outperformed with a gain of 16 per cent during the same period. 

Analysts attribute the recent gains to sustained demand for Gold by global central banks, as the supply remains limited. 

Praveen Singh, Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas,