Precious metals continued their upward march last week as well. In terms of dollars, gold and silver appreciated 1.4 per cent and 1.6 per cent last week and closed at $2,658 per ounce and $31.6 an ounce respectively.

Similarly, in the domestic market, gold futures (₹75,718 per 10 gm) was up 1.2 per cent and silver futures (₹91,398 per kg) rallied 1.4 per cent.

MCX-Gold (₹75,718)

Gold futures (December) surpassed ₹75,000-mark last week and marked a high of ₹76,527 before moderating to the current level of ₹75,718.

The contract continues to exhibit strength and the probability of it touching ₹78,000 is high. A breakout of ₹78,000 can lift it to ₹80,000 quickly.

But if gold futures fall from here, it can find support at ₹75,000. Below this, there is a trendline support at ₹74,400. As long as this holds, the bias will be bullish.

Trade strategy: Retain the longs that we recommended at ₹74,820 last week. Revise the stop-loss to ₹74,800. When the contract rises to ₹77,000, revise the stop-loss to ₹75,800. Exit at ₹78,000.

MCX-Silver (₹91,398)

Silver futures (December), after beginning the week on a muted note, broke out of the resistance at ₹90,800 on Tuesday.

Although it has largely been in a sideways trend in the past few sessions, the trend is bullish. We expect silver futures to touch ₹96,500 or even ₹100,000 soon.

But if the contract drops from the current level, the nearest support it can find is at ₹90,800. Subsequent support is at ₹88,000.

Trade strategy: Last week, we suggested buying silver futures with a stop-loss at ₹88,000 if it surpasses ₹90,800. Hold this trade. When the contract rises to ₹94,000, modify the stop-loss to ₹91,000. Book profits at ₹96,200.

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