The precious metals appreciated for the second week in a row. Gold and silver gained 1.7 per cent each last week, as they closed at $2,053 and $24.2 per ounce respectively on Friday.

Similarly, on the MCX, gold futures and silver futures were up 1.2 per cent each last week. They had closed at ₹62,954 (per 10 gram) and ₹75,386 (per kg) respectively on Friday.

MCX-Gold (₹62,954)

Gold futures (February contract) was largely moving in a range before rallying on Friday. The positive close means that the bulls are gaining traction.

Going ahead, we anticipate further rally in gold futures where the price could touch ₹64,000 - a potential barrier. Subsequent resistance is at ₹65,000.

In case there is a drop in price, the contract can find support at ₹62,700 and ₹62,000. The nearest support below ₹62,000 is at ₹61,000.

Trade strategy: Retain the longs we suggested to initiate at around ₹61,720. The revised stop-loss would now be at ₹61,800. Book profits at ₹63,800.

MCX-Silver (₹75,386)

Silver futures (March series) appreciated and closed above the ₹75,000-mark on Friday, a positive sign. We expect the contract to move further up this week.

The nearest notable resistance from the current level is at ₹78,000. A breach of this level can lift the contract up to ₹80,000, a psychological barrier.

Alternatively, if the contract falls below ₹75,000, it can find support at ₹74,000 – its 50-day moving average. Subsequent support is at ₹72,500. 

Trade strategy: Hold on to the buys we recommended at about ₹72,520. The initial stop-loss was at ₹69,800. Since the contract has moved above ₹75,000, revise the stop-loss to ₹73,000.

When the contract surpasses ₹76,500, move the stop-loss further up to ₹74,300. Liquidate the longs at ₹77,500.

Related Topics
comment COMMENT NOW