Gold appreciated last week, whereas silver moderated. In dollar terms, the former gained 0.5 per cent to end at $2,062.9 per ounce and the latter dropped 1.7 per cent to close at $23.8 per ounce.

On the MCX, gold futures was up 0.4 per cent to end at ₹63,203 (per 10 gram), but silver futures lost 1.3 per cent and closed at ₹74,430 (per kg).

MCX-Gold (₹63,203)

Gold futures (February contract) rallied to mark an intra-week high of ₹63,821 on Thursday, before softening to ₹63,203 on Friday. 

The contract hit the resistance band of ₹63,800-64,000 and moderated. While the trend has not reversed, there is a chance for gold futures to stay flat or see a minor dip.

From the current level, the nearest support is at ₹62,600. Below this, the region between ₹61,750 and ₹62,000 is a support band. Resistance above ₹64,000 is at ₹65,000.

Trade strategy: Though the trend is bullish, current price levels call for caution. Traders can stay away and initiate longs after the breakout of ₹64,000 or post a dip to ₹62,600.

MCX-Silver (₹74,430)

Silver futures (March series) was largely flat through last week. Towards the end, it saw a decline leading to a weekly loss.

However, the uptrend has not been invalidated. The contract has its 50-day moving average support at ₹74,200. Subsequent support is at ₹72,500.

On the other hand, there is a barrier at ₹76,000. If bulls regain traction and lift the contract above ₹76,000, the upswing could extend to ₹78,000.

Trade strategy: Since the support at ₹74,200 gives hope for the bulls, retain the silver futures longs that we suggested to initiate at ₹72,520. But revise the stop-loss from ₹73,000 to ₹73,600.

When the contract surpasses ₹76,000, move the stop-loss to ₹74,300. Exit the longs at ₹77,500.

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