The precious metals depreciated last week even though the dollar declined. In dollar terms, gold ($2,654/ounce) and silver ($30.6/ounce) fell 2.2 and 2.3 per cent respectively.

Similarly, in the domestic market, gold futures (₹77,128/10 gm) was down 1.6 per cent and silver futures (₹91,209/kg) lost 2 per cent.

MCX-Gold (₹77,128)

Gold futures (February) witnessed a sharp fall in price last Monday. Although it recovered in the second half of last week, it still posted a loss.

The broader trend is bullish. However, the price action hints at a potential sideways movement in the near-term where the contract is likely to stay within ₹75,000 and ₹78,400.

If there is a steady rally from the current level, it can face resistance at ₹80,000. Whereas a fall from here will be met with a support at ₹75,400 and ₹74,000.

Trade strategy: Buy gold futures (February) if it moderates to ₹75,500. Target and stop-loss can be ₹80,000 and ₹74,000 respectively.

MCX-Silver (₹91,209)

Silver futures (March) faced considerable selling pressure early last week. But it found support at ₹90,000. The price region between ₹89,500 and ₹90,000 is a support band.

That said, the recovery was limited and silver futures underperformed gold futures last week.

Taking the prevailing price action into consideration, it can be said that silver futures is consolidating between ₹89,500 and ₹94,000. The direction of break of this range can give us clues about the direction of the next price swing.

Resistance above ₹94,000 is at ₹1,00,000 whereas immediate support below ₹89,500 is at ₹85,000.

Trade strategy: Since there is some uncertainty with respect to the trend, we suggest staying out for now. Participants can take trades along the direction of the break of the ₹89,500-94,000 range.

Published on November 30, 2024