Gold ended last week flat whereas silver posted a loss. In terms of dollars, gold was up by a marginal 0.1 per cent as it closed at $2,657 per ounce. Silver lost 2.2 per cent and ended the week at $31.5 an ounce.
In the domestic market, gold futures (₹76,307 per 10 gm) was up 0.2 per cent and silver futures (₹91,690 per kg) was down 1.8 per cent.
MCX-Gold (₹76,307)
Gold futures (December) was trending down in the first half of last week. But it recovered in the second half, effectively gaining a marginal 0.2 per cent for the week.
The contract has bounced off the 20-day moving average, which coincides with the support at ₹75,000. The probability of a rally from here is high. Gold futures can touch ₹78,000 and ₹80,000 in the near-term.
If the price falls, the contract can find support at ₹75,000. Only a breach of this can turn the outlook weak.
Trade strategy: We recommended longs at ₹74,820 three weeks ago. Retain this trade with a stop-loss at ₹74,800. When the contract touches ₹77,000, revise the stop-loss to ₹75,800. Exit at ₹78,000.
MCX-Silver (₹91,690)
After dropping early last week, silver futures (December) recovered towards the end, showing that the broader bull trend is intact.
The contract found support at ₹88,500 and rebounded. The chart hints that silver futures can rise further. The nearest barriers can be spotted at ₹96,500 and ₹100,000.
If the contract drops from the current level, it can find support between ₹88,000 and ₹88,500.
Trade strategy: Go long on silver futures now at ₹91,690 and add longs at ₹90,000. Place a stop-loss at ₹88,000. When the price hits ₹94,000 revise the stop-loss to ₹92,000. Book profits at ₹96,200.