Gold and silver prices saw a correction over the last week. In terms of dollars, gold and silver depreciated 1.5 per cent and 2.4 per cent as they closed at $2,302 and $26.5 per ounce respectively.

Similarly, on the Multi Commodity Exchange, gold futures lost 1.2 per cent to end at ₹70,668 (per 10 gram), whereas silver was down 1.8 per cent to close at ₹81,043 (per kg).

MCX-Gold (₹70,668)

Gold futures (June contract), although lost 1.2 per cent last week, has been fluctuating within the ₹70,000-71,800 range recently.

A breakout of ₹71,800 will be an indication of a resumption in the uptrend. Resistance above ₹71,800 is at ₹73,300 and ₹75,000. But if gold futures slip below ₹70,000, the decline could extend to ₹68,250, a support. Next support is at ₹67,000.

Trade strategy: Buy with stop-loss at ₹70,500 if gold futures breach ₹71,800. When the contract surpasses ₹73,500, raise the stop-loss to ₹72,000. Exit at ₹75,000.

But if gold futures fall below ₹70,000, go short with stop-loss at ₹71,500. When the contract touches ₹68,250, alter the stop-loss to ₹70,000. Book profits at ₹67,000.

MCX-Silver (₹81,043)

Silver futures (July series), too, appears to be trading within a key resistance (₹83,000) and a support (₹80,000). So, the next swing in price can be based on the direction of the break of this range.

A breakout of ₹83,000 can lift silver futures to ₹86,000 and to ₹87,500. On the other hand, a fall below ₹80,000 can trigger a downswing to ₹77,000 and to ₹75,000.

Trade strategy: Stay on the fence for now. Go long on silver futures with a stop-loss at ₹80,500, if it rallies past ₹83,000. When the contract rises to ₹86,000, modify the stop-loss to ₹84,000. Exit at ₹87,500.

In case silver futures breaks below ₹80,000, initiate short with stop-loss at ₹83,000. When the price drops to ₹77,000, revise the stop-loss to ₹79,000. Liquidate at ₹75,000.