Gold gained 1.1 per cent whereas silver lost 2 per cent last week, as they closed at $2,035.7 and $22.94 per ounce, respectively.

Similar divergence in performance was seen in the domestic market too. Gold futures was up 0.8 per cent and silver futures declined 2.3 per cent – they ended at ₹62,345 (per 10 gram) and ₹70,479 (per kg) respectively.

MCX-Gold (₹62,345)

Gold futures (April contract) crossed above ₹62,000-mark last week. However, there are roadblocks ahead and it has been making lower highs and lower lows since January.

There is a barrier at ₹62,600, where 50-day moving average (DMA) and a trendline resistance coincide. Gold futures could fall off this level. In that case, it can decline to ₹60,800.

On the other hand, immediately above ₹62,600 is the resistance of ₹63,000. Gold futures should breach ₹63,000 for it to turn the trend bullish.

Trade strategy: Traders can short gold futures when it rallies to ₹62,600. Place initial stop-loss at ₹63,200. When the contract falls below ₹61,500, alter the stop-loss to ₹62,200. Exit at ₹61,000.

MCX-Silver (₹70,479)

Silver futures (March series) fell through last week. While it marked a low of ₹69,795 on Friday, it reclaimed the ₹70,000-mark before the end of the session. Thus, the support at ₹70,000 remains valid.

The price action on the daily chart shows that the contract has been stuck within ₹70,000 and ₹73,000. That said, the movement within this range is showing some bearish bias.

So, even though silver futures is trading near the range-bottom, taking fresh longs can be risky. Moreover, a potential decline in gold futures can weigh on silver futures too.

If ₹70,000 support is decisively breached, silver futures can fall to ₹68,000 and to ₹66,500. But if it rallies past ₹73,000, there could be an upswing to the resistance band of ₹75,000-76,000.

Trade strategy: Go short if the support at ₹70,000 is taken out. Target and stop-loss can be ₹67,000 and ₹71,700 respectively.