The precious metals snapped a three-week rally by depreciating as the dollar rallied. Gold and silver lost 3.2 per cent and 9.5 per cent as they closed the week at $2,004.5 and $23 per ounce respectively.

Similarly, on the MCX, gold futures were down 2.6 per cent and silver futures fell 7.1 per cent. They had closed the week at ₹61,719 (per 10 gram) and ₹72,518 (per kg) respectively.

MCX-Gold (₹61,719)

Gold futures (February contract), after opening with a gap-up, started to decline. It slipped below the support at ₹62,500 and closed at ₹61,719.

However, the broader trend remains bullish. The 20-day moving average, at around ₹61,700, can provide support. Subsequent support is at ₹60,600. A fall below this level is less likely.

If there is a recovery from the current level, gold futures is likely to retest ₹64,000. That said, a breach of the support at ₹60,600 can take the contract down to ₹60,000.

Trade strategy: Buy gold futures now at ₹61,719 and add longs if the price dips to ₹60,600. Place stop-loss at ₹59,900.

When the contract rises above ₹62,500, tighten the stop-loss to ₹61,800. Exit at ₹63,800.

MCX-Silver (₹72,518)

Silver futures (March series) tumbled last week to close at ₹72,518 versus the preceding week’s close of ₹78,087. The contract posted a loss in all five sessions last week.

However, it is now trading near the support at ₹72,500. If the bears drag the contract below this, there is an immediate support at ₹71,000. A break of this level can turn the outlook weak.

On the other hand, a rising trendline support coincides at ₹72,500, giving hope for the bulls. In case there is a bounce, it can rally to ₹78,000. Note that ₹75,000 is a resistance before that.

Trade strategy: Buy silver futures now at ₹72,518 and on a dip to ₹71,000. Stop-loss at ₹69,800. When the contract rallies above ₹75,000, tighten the stop-loss to ₹73,000. Book profits at ₹77,500.