The precious metals posted gains last week. Gold and silver were up 0.8 per cent and 2.8 per cent, as they closed the week at $2,018.2 and $23.8 per ounce respectively.

Similarly, on the MCX, gold futures went up 0.8 per cent and silver futures rallied 2.8 per cent. They had closed the week at ₹62,192 (per 10 gram) and ₹74,525 (per kg) respectively.

MCX-Gold (₹62,192)

Gold futures (February contract) declined in the first half of last week. But then, it found support at ₹61,000 and rebounded sharply, where the 50-day moving average lies.

From the current level, the contract is expected to rally and touch ₹64,000 in the near term. A breakout of this can trigger another leg of upswing towards ₹65,000.

But if gold futures fall from here, it can find support at ₹62,000 and ₹61,000. A decline below ₹61,000 is less likely as the charts indicate more scope for a rally.

Trade strategy: We suggested buying gold futures at ₹61,719 with a stop-loss at ₹59,900 last week. Since the contract rallied above ₹62,500 intraweek, the revised stop-loss would be at ₹61,800. Hold this trade and exit at ₹63,800.

MCX-Silver (₹74,525)

Silver futures (March series) fell and marked an intraweek low of ₹71,234 on Wednesday before recovering to close at ₹74,525 on Friday.

The rebound in the second half indicates that the bulls are gaining traction. This can lead to a rally to ₹78,000 soon. Resistance above this is at ₹80,000.

On the other hand, if there is a decline from here, silver futures can find support at ₹72,500 and ₹71,300. Subsequent support is at ₹70,000. That said, a fall below ₹71,300 this week is less likely.

Trade strategy: Last week, we recommended going long on silver futures at ₹72,518. Stop-loss at ₹69,800. Retain this trade.

Going ahead, when the contract rallies above ₹75,000, tighten the stop-loss to ₹73,000. Book profits at ₹77,500.

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