Gold closed last week on a flat note, whereas silver fared better as it posted a gain. In terms of dollars, gold ended flat at $1,947.6 per ounce, but silver went up 1.3 per cent to wrap up the week at $23.6 an ounce.

On the Multi Commodity Exchange (MCX), the gold futures closed the week without much change at ₹59,608 (per 10 gram). The silver futures rallied 1.1 per cent to close the week at ₹72,020 (per kg).

MCX-Gold (₹59,608)

Gold futures (August series) on the MCX was up for most part of last week. However, on Friday, it saw considerable sell-off which erased all the gains it had made during the week. This shows the strength of the resistance at ₹60,000.

The double-top pattern stays valid, and it indicates a potential fall to ₹58,000 in the near term. Support below ₹58,000 is at ₹56,200 where the 200-day moving average (DMA) lies currently. Even if the contract recovers from the current level, a rally above ₹61,000 is less likely.

Trade strategy: We recommended short positions last week at an average price of ₹59,780. Stop-loss was suggested at ₹61,000. Retain the shorts.

When the contract touches ₹58,500, tighten the stop-loss to ₹59,500. Book profits at ₹58,050.

MCX-Silver (₹72,020)

Silver futures (July contract), last week, rallied until Thursday. However, it fell after facing the 20-DMA resistance at nearly ₹73,000 on Friday. Although the contract gained on a weekly basis, the price action hints at further fall, potentially to ₹67,300. The support at ₹70,000 may not be able to hold back the bears.

In case of an up move from here, the contract is expected to face stiff resistance at ₹73,000. The chances are slim for a rally past ₹73,000 this week.

Trade strategy: We suggested short positions last week at an average price of ₹71,615. Stop-loss for this is at ₹73,200. Hold the shorts.

Move the stop-loss down to ₹72,200 when the contract falls below ₹70,000. Exit the shorts at ₹67,500.

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