The precious metals saw a diverging performance – gold declined, whereas silver gained. In terms of dollars, gold lost 0.7 per cent as it ended at $1,992 per ounce and silver gained 0.4 per cent as it closed at $23.3 an ounce.

Similarly, on the MCX, gold futures dropped 0.2 per cent and silver futures went up 0.7 per cent, as they ended at ₹61,020 (per 10 gram) and ₹72,252 (per kg) respectively.

MCX-Gold (₹61,020)

Gold futures (December contract) fell in the first half of last week. But ₹60,700 provided the support and restricted the fall. Below ₹60,700, there is a support at ₹60,000. Until this level holds, the trend will remain bullish.

If the contract recovers, there is a minor hurdle at ₹61,500. A breach of this level can lift the contract to ₹62,500, a resistance. Subsequent resistance is at ₹65,000.

On the other hand, if the support at ₹60,000 is breached, the downswing can extend towards the support band of ₹58,700-59,000.

Trade strategy: Last week, we suggested buying at ₹61,156. Hold this trade. Add longs, if the price dips to ₹60,400. Place stop-loss at ₹59,850. When the contract touches ₹61,500, tighten the stop-loss to ₹60,700. Book profits at ₹62,400.

MCX-Silver (₹72,252)

Silver futures (December series) was largely flat last week. It closed at ₹72,252 versus the preceding week’s close of ₹71,717. Therefore, the contract remains within the ₹71,000-73,600 price band.

The 200-day moving average now coincides at ₹73,600, making it a strong barrier. At the other end, below ₹71,000 is another support at ₹70,000. Hence, the price region between ₹70,000 and ₹71,000 is a support.

If silver futures break out of ₹73,600, it can appreciate to ₹76,500, a barrier. Subsequent resistance is at ₹78,000. But if the contract declines below ₹70,000, it could fall to ₹67,500.

Trade strategy: Go long in case the contract surpasses the ₹73,600-mark. Target and stop-loss of this trade can be at ₹76,500 and ₹71,900 respectively.