Precious metals are at record levels post last week’s rally. In terms of dollars, gold and silver appreciated 4.3 per cent and 10 per cent, as they closed at $2,330 and $27.50 per ounce respectively.

Similarly, on the Multi Commodity Exchange, gold futures gained 4.3 per cent to end at ₹70,636 (per 10 gram), whereas silver was up 7.7 per cent to close at ₹80,863 (per kg).

MCX-Gold (₹70,636)

Gold futures (June contract) registered an all-time high of ₹70,699 last Thursday before ending the week a little lower at ₹70,636. The price action denotes strong bull trend and so, the chances for further rally are high.

Since the contract is trading in the uncharted territory, there are no visible resistance levels. We expect ₹73,000 and ₹75,000 to be the likely barriers ahead. Participants should also be prepared for a potential corrective decline to ₹69,000-69,300 price band before going up from here.

Trade strategy: Buy if gold futures break out of ₹70,800. Target and stop-loss can be at ₹73,000 and ₹69,800 respectively.

But if the contract dips from here, buy when the price drops to ₹69,300. Place initial stop-loss at ₹67,500. When the contract goes above ₹70,800, raise the stop-loss to ₹69,800. Exit at ₹73,000.

MCX-Silver (₹80,863)

Silver futures (May series) witnessed a significant upswing in price over the past week. The contract closing above ₹80,000-mark is a bullish sign.

However, there might be a minor decline in price, probably to ₹78,000, from the current level before we see the next leg of the rally. Eventually, the silver futures is likely to hit ₹85,000 in the short term.

Trade strategy: Buy silver futures if it breaks out of ₹81,200. Place initial stop-loss at ₹79,500. Book profits at ₹84,800.

But if the price drops, initiate longs at ₹78,500 with a stop-loss at ₹76,000. When the contract rises above ₹81,200, alter the stop-loss to ₹79,500. Exit at ₹84,800.