Comments
Gold, in dollar terms, saw a marginal gain of 0.2 per cent last week and closed at $1,924.3 per ounce. But on the Multi Commodity Exchange (MCX), it went up 1 per cent to end the week at ₹58,782 per 10 gram.
Silver, in terms of dollar, was up 1.3 per cent and MCX silver futures gained 1.8 per cent as they wrapped up the week at $23.1 per ounce and ₹71,310 per kg, respectively. Both precious metals fared better in rupee terms as the domestic currency depreciated against the dollar.
MCX-Gold (₹58,782)
Gold futures (August series) marked an intra-week high of ₹58,949 on Friday before closing at ₹58,782. Although it appreciated for the week, it remains below a key resistance at ₹60,000. Until this is breached, the bears will be at an advantage over the bulls.
In the coming weeks, gold futures may fall deeper to ₹55,800 even as ₹57,750 is a minor support. In case the contract breaks out of ₹60,000 it might touch ₹62,000 quickly. But this is less probable given the broader bear trend.
Trade strategy: Retain the shorts initiated at an average price of ₹58,600. Maintain the stop-loss at ₹59,600.
When the contract slips below ₹57,500, tighten the stop-loss to ₹58,200. On a fall to ₹56,800, exit half of the short positions and tighten the stop-loss to ₹57,600. Liquidate the rest at ₹55,800.
MCX-Silver (₹71,310)
Silver futures (September contract), despite a rally, could not surpass the barrier at ₹71,400. Immediately above this are the resistances at ₹73,700 and ₹75,000. The contract should take down the hurdle at ₹75,000 for it to turn the trend bullish.
Until then, the bias is bearish. We expect silver futures to resume the downtrend anytime and potentially fall to ₹65,000 in the coming weeks. Before ₹65,000, there is a minor support at ₹68,400.
Trade strategy: Hold the short positions taken at an average price of ₹70,050. Retain the initial stop-loss at ₹73,000. When the price falls below ₹68,400, modify the stop-loss to ₹70,000. Book profits at ₹65,000.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.