The precious metals gained last week on dollar weakness. Gold appreciated 2.3 per cent to end the week at $1,980.9 per ounce, whereas silver gained 6.8 per cent to close at $23.7 an ounce.
Similarly, gold futures on the MCX was up 1.8 per cent and silver futures gained 4.4 per cent and closed the week at ₹60,713 (per 10 gram) and ₹73,140 (per kg) respectively.
MCX-Gold (₹60,713)
Gold futures (December contract) bounced off the support at ₹59,500 last week. On Thursday, it made an intraweek high of ₹61,914 before closing at ₹60,713 on Friday.
The prevailing price action gives a bullish bias as the contract has closed above ₹60,000. The nearest resistance levels can be spotted at ₹61,500 and ₹62,000.
On the other hand, the contract has its nearest support at ₹60,000. Subsequent support is at ₹59,500. Note that there is a small chance for gold futures to oscillate between ₹59,500 and ₹61,500 in the short term.
Trade strategy: Going ahead, gold futures might see a minor decline to ₹60,000 and then see a rally to ₹61,500.
So, traders can buy gold futures when the price falls to ₹60,100. Target and stop-loss can be at ₹61,500 and ₹59,300 respectively.
MCX-Silver (₹73,140)
Silver futures (December series) rebounded from the support at ₹70,000 and rallied through last week.
However, unable to surpass the resistance at ₹73,600, the contract closed at ₹73,140 on Friday after making an intraday high of ₹74,000.
If ₹73,600 is taken out, it can trigger a rally to ₹76,500. But if silver futures fall off the barrier at ₹73,600, the price might dip to ₹71,000. Above this level, there is a minor support at ₹71,400.
Trade strategy: Stay out for now. Initiate fresh long positions if silver futures break out of the resistance at ₹73,600. Target and stop-loss for this trade can be at ₹76,500 and ₹71,900 respectively.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.