Gold saw a decline, whereas silver stayed flat last week. The former depreciated 0.5 per cent to end the week at $2,321.5 an ounce, whereas the latter barely changed on a weekly basis and closed at $29.6 per ounce.
Similarly, in the domestic market, gold futures lost 0.5 per cent to close at ₹71,584 (per 10 gram), whereas silver futures was flat as it ended at ₹89,139 (per kg).
MCX-Gold (₹71,584)
Gold futures (August contract) faced a notable sell-off on Friday, leading to a weekly loss. However, the contract remains above the support band of ₹70,300-71,000.
But this does not indicate a rally, as the contract has a resistance at ₹74,800. The price action shows that gold futures has lost momentum and is likely to consolidate for some time.
The direction of the break of the ₹70,300-74,800 range can tell us about the path of the next leg of trend. Resistance above ₹74,800 is at ₹78,000, whereas support below ₹70,300 is at ₹67,700.
Trade strategy: Gold futures is not trending at the moment. Refrain from trading.
MCX-Silver (₹89,139)
Silver futures (July series), too, saw a swift price-drop on Friday. However, it remained flat on a weekly basis.
If the contract falls from here, it can find support at ₹87,600, where its 50-day moving average and a trendline support coincide. A breach of this can open the door for a fall to ₹80,000.
But if the contract rebounds, it can rally to ₹93,300, a resistance. Subsequent hurdle is at ₹95,000. Only a breakout of ₹95,000 can turn the trend bullish once again. Until then, silver futures could consolidate within ₹87,000 and ₹95,000.
Trade strategy: Trading is not recommended right now as silver futures can be range-bound in the near term.