Gold remained flat last week, whereas silver posted a loss on a weekly basis due to a price decline early last week. The yellow metal closed largely unchanged at $2,326 per ounce and silver was down 1.5 per cent as it ended at $29.1 an ounce.
Similarly, on the MCX, gold futures was flat at ₹71,582 (per 10 gram), whereas silver futures lost 1.9 per cent as it ended at ₹89,540 (per kg).
MCX-Gold (₹71,582)
Gold futures (August contract), which was down a little in the first half of last week, recouped its loss in the last two sessions, effectively ending the week flat.
Going ahead, 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.
Note that the price band of ₹70,300-71,000 is a support band, which can prevent a downswing.
Trade strategy: Gold August futures remains within a range. Do not initiate fresh trades at the moment.
MCX-Silver (₹89,540)
Silver futures (September series) dropped to mark a low of ₹88,238 mid-week before recovering to close at ₹89,540. It is now hovering around the 50-day moving average.
The nearest support is at ₹87,000. A breach of this can turn the short-term outlook bearish. Subsequent support is at ₹82,000.
On the other hand, if the contract attempts to recover, it can face resistance at ₹95,000 and ₹98,000.
As it stands, there is a good chance for silver futures to consolidate within ₹88,000 and ₹95,000. So, the next leg of trend is uncertain now.
Trade strategy: Fresh positions are not recommended at the current market price as silver futures could stay within a price band in the short run.