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The spot gold made a failed attempt last Friday to break out of the range between $1,450 and $1,480 an ounce.
After registering an intra-day high of $1,495.13, the yellow metal ended the session at $1,481.6.
Though the closing price was above $1,480, the breakout was not significant.
However, there is some bullish bias as the price action makes higher lows. A decisive break above $1,480 can take gold to $1,515, beyond which the resistance is at $1,535. On the downside, the supports are at $1,450 and $1,425.
Meanwhile, the spot price of silver, too, is in a sideways trend, oscillating between $16.65 and $17.27 an ounce. The price inched up last week and closed at $17.19. If the price closes above $17.27, it can advance towards the resistance band between $18 and $18.2. But if the price weakens below $16.65, the immediate support is at $16.
Though both the precious metals remain within a price band, there are some bullish indications which may have a positive impact on its price in the Multi Commodity Exchange (MCX).
MCX-Gold (₹37,991)
The gold price in MCX continues to tread in a sideways trend, where the February futures contract is fluctuating between ₹37,500 and ₹38,950. Though the realtive strength index (RSI) is flat, the moving average convergence divergence (MACD) indicates a positive outlook as it has entered the positive territory.
However, traders are advised to wait for a confirmation, ie, a daily close above ₹38,950, before initiating long positions. If the contract closes above that level, it may rise to ₹40,000. Above that level, the resistance is at ₹40,800. But if the contract depreciates, it will find support at ₹37,500 and ₹36,380.
MCX-Silver (₹44,904)
After a false break down from the range between ₹44,240 and ₹45,650, the March futures contract of silver in MCX has been gradually appreciating. The RSI and the MACD in the daily chart are exhibiting bullish bias. While the RSI has crossed above the midpoint level of 50, the MACD is pointing upwards as it has entered the positive region.
But, from a trading perspective, it is recommended to wait until the contract breaks out of the resistance at ₹45,650. If the contract breaks out of that level, it may rally to ₹47,700. Above that level, the resistance is at ₹49,200. On the other hand, if the contract weakens from the current level, the support levels are at ₹44,240 and ₹43,410.
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