Precious metals showed a mixed performance last week. While gold depreciated 0.5 per cent to close at $2,018.5 per ounce, silver was up 0.9 per cent as it ended the week at $22.8 an ounce.

On the MCX, gold futures fell 0.4 per cent to close the week at ₹62,106 (per 10 gram); silver futures gained 0.4 per cent to end at ₹71,773 (per kg).

MCX-Gold (₹62,106)

Gold futures (April contract) was moving within a narrow range of ₹62,100-62,600 over the past week. As it stands, the next leg of trend appears uncertain.

If the contract rallies and gets over ₹62,600, it can extend the upswing to ₹63,000. A breach of this can lift it to ₹64,000.

But if gold futures fall below ₹62,100, it could drop to ₹61,150 – its 200-day moving average (DMA).

Trade strategy: We had suggested buying February futures at ₹62,500 with stop-loss at ₹61,500. Since there is support and this contract is nearing expiry, one can rollover to April series.

Exit February futures long now at around ₹61,960 and buy April futures at the current level of about ₹62,100. Target and stop-loss can be at ₹63,800 and ₹61,750.

MCX-Silver (₹71,773)

Silver futures (March series) opened on the back foot last week and slipped below the support at ₹71,000. However, the contract recovered quickly and closed the week above this level.

The 20-DMA resistance at ₹72,260 can block the rally. If this is invalidated, subsequent resistance levels can be seen at ₹73,300 and ₹74,500.

In case silver futures decisively breach the support at ₹71,000, it can open the door for a fall to ₹68,000, its nearest support. Below this, ₹66,500 is a base.

Trade strategy: Refrain from initiating fresh positions as the trend for this week is uncertain at the moment.

Consider longs if ₹72,260 is broken. But if there is a decline, go short below ₹71,000.

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