Gold rallied sharply, whereas silver witnessed a smaller gain. The former was up 2.3 per cent and the latter 0.9 per cent as they closed at $2,083.4 and $23.2 per ounce, respectively.

On the MCX, gold futures gained 2 per cent to end at ₹63,563 (per 10 gram), whereas silver futures closed the week flat at ₹72,278 (per kg).

MCX-Gold (₹63,563)

Gold futures (April contract) was largely flat for most of the week. But it gathered momentum, especially on Friday, and it posted a considerable gain.

Thus, the contract has taken out some key resistance levels and now, the probability of further rally is high. In the short term, gold futures will most likely touch ₹65,000.

The bullish outlook will be negated if the contract falls below ₹62,600. In such a case, the price could decline to ₹61,100 and possibly to ₹60,000.

Trade strategy: Traders can buy gold futures now at around ₹63,560 and accumulate if the price falls to ₹63,000. Place initial stop-loss at ₹62,400.

When the contract rises past ₹64,100, tighten the stop-loss to ₹63,400. Exit at ₹65,000.

MCX-Silver (₹72,278)

Silver futures (May series), which fell in the first half of last week, recovered in the second half. On a weekly basis, the contract closed flat at ₹72,278 versus preceding week’s close of ₹72,264.

There is a good chance for silver futures to rally from the current level. A potential upswing in gold futures could help too. The nearest resistance levels are ₹74,000 and ₹75,000.

The contract has formed a good base at ₹70,500. So, only if this level is invalidated, will the trend turn bearish. Supports below ₹70,500 are at ₹69,400 and ₹66,500.

Trade strategy: Go long on silver futures now at around ₹72,280. Add longs if the contract dips to ₹71,300. Place stop-loss at ₹70,200.

When the contract goes up to ₹74,000, tighten the stop-loss at ₹73,000. Liquidate the longs at ₹75,000.