As the dollar went up, the precious metals saw a decline in price last week. In terms of dollars, gold and silver lost 0.9 per cent and 2.9 per cent, and closed at $1,942 and $23.6 per ounce, respectively.

Similarly, on the Multi Commodity Exchange (MCX), gold futures was down 0.4 per cent, as it closed the week at ₹59,527 per 10 gram. Silver futures fell 2.1 per cent to end at ₹72,478 per kg.

MCX-Gold (₹59,527)

Gold futures (October series) continued to stay flat within ₹59,300 and ₹60,320. Technically, a break of this range is needed for us to predict the next leg of trend.

However, there is a slight bullish bias as ₹59,300 is a strong support where both 20- and 50-day moving averages (DMAs) coincide. If the contract surpasses ₹60,320, we can see a swift upswing to ₹62,000. But if the contract falls below the support at ₹59,300, it could extend the downswing to ₹58,850 or ₹58,000.

Trade strategy: Retain the longs initiated at ₹59,785 last week. Target and stop-loss can be the same as recommended, which are at ₹62,000 and ₹58,850 respectively.

MCX-Silver (₹72,478)

Silver futures declined for the third consecutive week, as it closed at ₹72,478 versus the preceding week’s close of ₹74,059. Although it has closed below ₹73,000, the contract has a strong support at ₹71,400, where the 200-DMA lies.

If ₹71,400 is breached, we are likely to see a quick fall to ₹68,500. On the other hand, if silver futures rebounds, it will face a minor resistance at ₹73,000. Notable barriers above this level are at ₹75,000 and ₹76,700.

Trade strategy: The stop-loss at ₹72,000 for the longs we suggested last week was hit as the silver futures made an intra-week low of ₹71,560.

As it stands, the price action appears a bit weak. However, there is support which can arrest the fall. So, we advise traders to wait for some clarity before initiating trades on either side.

The short-term trend depends on which direction the contract comes out of the ₹71,400-73,000 range.

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