Precious metals witnessed higher downward pressure last week than the preceding week. In terms of dollars, gold and silver lost 4.5 per cent and 3.2 per cent as they ended at $2,563 per ounce and $30.3 an ounce respectively.

In the domestic market, gold futures (₹73,946 per 10 gm) lost 4.3 per cent and silver futures (₹88,421 per kg) declined 3.1 per cent.

MCX-Gold (₹73,946)

Gold futures (December) posted a loss for the second consecutive week. Notably, it slipped below the support at ₹75,000, potentially opening the door for further decline.

From the current market price, the nearest support can be spotted at ₹72,700 and ₹71,500. While there can be a minor upswing to retest ₹75,000, we expect the gold futures to decline to ₹72,000 in the near term.

Only a breakout of ₹76,500 will mean the resumption of a broader uptrend. Resistance above ₹76,500 is at ₹79,800.

Trade strategy: For a better risk-reward ratio, short gold futures when it inches up to ₹75,000. Place a stop-loss at ₹76,500.

When the contract drops to ₹72,700, revise the stop-loss to ₹74,000. Book profits at ₹72,000.

MCX-Silver (₹88,421)

Silver futures depreciated for the third consecutive week. However, last week, it managed to outperform gold futures and managed to hold above the support at ₹88,000.

Nevertheless, we expect it to breach ₹88,000 and decline to ₹83,000 in the near term. Below ₹83,200, the price band of ₹80,000-80,800 is a support.

In case silver futures recover from the current level, it will face roadblocks at ₹92,000 and ₹96,600.

Trade strategy: Stay on the fence. Short silver futures if it slips below ₹88,000. Target and stop-loss can be ₹83,000 and ₹90,000 respectively. After initiating the trade, when the price drops to ₹85,000, revise the stop-loss to ₹87,500.

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