Precious metals had a glittering week. Gold appreciated 2.8 per cent, whereas silver rose 7.1 per cent to end the week at $2,392 and $31.2 per ounce respectively.

The positive trend was seen in the domestic market too. MCX gold futures (₹73,051 per 10 gram) rallied 2.1 per cent, whereas MCX silver futures (₹93,554 per kg) gained 4.5 per cent.

MCX-Gold (₹73,051)

Bulls pushed gold futures (August contract) higher last week on the back of the support at ₹71,000. The price action shows that the contract has formed a good base at ₹71,000 and has marked a higher high.

The odds for a fresh leg of rally have gone up significantly. Gold futures can get past ₹75,000 and move towards ₹78,000 in the short term. The bullish inclination will be cancelled out only if the contract slips below the price band of ₹70,000-71,000. Support below ₹70,000 is at ₹67,500.

Trade strategy: Buy gold August futures now at ₹73,050 and accumulate if the price dips to ₹71,700. Place initial stop-loss at ₹69,800. When the contract touches ₹75,000, raise the stop-loss to ₹73,800. Book profits at ₹78,000.

MCX-Silver (₹93,554)

Silver futures (September series) bounced off the support at ₹90,000 last week. The 50-day moving average coincides at ₹90,000, making it a good base. The chart shows the upswing possesses good momentum backed by considerable volume. Hence, we can expect more upside.

The contract can surpass the hurdle at ₹98,000 and hit the psychological ₹1,00,000-mark in the near term. The bulls will face a threat only if the price drops below ₹88,300. In such a scenario, silver futures can decline to ₹82,000.

Trade strategy: Go long on silver futures now at ₹93,550. Add longs if the price moderates to ₹90,800. Keep a stop-loss at ₹88,000. When the price touches ₹97,500, alter the stop-loss to ₹95,000. Exit at ₹99,800.