Precious metals returned a mixed performance last week. While gold appreciated 0.9 per cent to close at $2,036.6 per ounce, silver was down 0.4 per cent as it ended the week at $22.7 an ounce.

On the MCX, gold futures gained 0.7 per cent to close the week at ₹62,562 (per 10 gram); silver futures fell 0.8 per cent to end at ₹71,208 (per kg).

MCX-Gold (₹62,562)

Gold futures (April contract) produced gains mid-week. This lifted it above both 20- and 50-day moving averages, an encouraging sign. But a drop in price on Friday weighed on the momentum.

Yet, the odds for a rally in gold futures is improving. But there is a resistance at ₹63,000. If this is invalidated, gold futures can quickly rally to ₹64,000-64,150 price band.

Alternatively, if the contract falls from here, it can find support at ₹62,000. A breach of this level can lead to a decline to ₹61,150, its 200-day moving average support.

Trade strategy: Hold the long that we recommended at ₹62,100. But raise the stop-loss from ₹61,750 to ₹62,000. Book profits at ₹63,800.

MCX-Silver (₹71,208)

Silver futures (March series), which gained in the first half, saw its price drop in the later half of last week after facing resistance at ₹72,700.

Despite the fall, the contract managed to close above the support at ₹71,000. If this base is taken out, we might see a downswing to ₹68,000, a support. Next support is at ₹66,500.

But if there is a rally from here, silver futures will face resistance at ₹72,700 and ₹73,300. Only a breakout of ₹73,300 will turn the outlook bullish. Resistance above ₹73,300 is at ₹75,000.

Trade strategy: We suggest staying out of silver futures from a trading perspective. Participants can consider fresh positions along the direction of the break of the ₹71,000-73,300 range.