Gold remained largely flat last week whereas silver appreciated. In terms of dollars, gold was down 0.2 per cent as it closed at $2,653 per ounce. Silver gained 1.9 per cent and ended the week at $32.2 an ounce.

In the domestic market, gold futures (₹76,143 per 10 gm) was up 0.6 per cent and silver futures (₹93,349 per kg) rallied 2.1 per cent.

MCX-Gold (₹76,143)

Gold futures (December) was stuck in the range of ₹75,400-76,650 through the last week. However, it remains above the support at ₹75,000, retaining the bullish inclination.

We expect the contract to resume the rally soon, surpass ₹76,650 and touch ₹78,000. Resistance above ₹78,000 is at ₹80,000.

If the contract falls below ₹75,400, it can find support at ₹75,000. A fall below the latter is less likely. Nearest support below ₹75,000 is at ₹74,500. Until these hold, the bias will be bullish.

Trade strategy: Retain the longs that we recommended at ₹74,820 a couple of weeks ago. Maintain the stop-loss at ₹74,800. When the contract touches ₹77,000, revise the stop-loss to ₹75,800. Exit at ₹78,000.

MCX-Silver (₹93,349)

Silver futures (December), after beginning the week on the back foot, recovered in the second half. It hit a high of ₹95,388 before moderating to the current level.

The price action is positive, and we anticipate further rally. The nearest barriers can be spotted at ₹96,500 and ₹1,00,000.

That said, if the contract drops from the current level, it can find a strong base at ₹90,000. Below this is the support at ₹88,000. So long as this stays true, the trend will be bullish.

Trade strategy: Two weeks ago, we suggested buying silver futures at ₹90,800 with a stop-loss at ₹88,000. Hold this trade. But revise the stop-loss up to ₹90,000. Book profits at ₹96,200.

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