Gold ($2,431 per ounce) and silver ($27.5 per ounce), in dollar terms, lost 0.4 per cent and 3.5 per cent respectively last week. In the domestic market, MCX gold futures (₹69,895 per 10 gram) posted a marginal gain of 0.2 per cent, whereas MCX silver futures (₹80,543 per kg) was down 2.4 per cent.

MCX-Gold (₹69,895)

Gold futures (October), after beginning on a weaker tone, dropped early in the week but recouped the losses in the last two sessions.

However, it remains below the resistance at ₹71,300. If the contract rallies past this level, it can extend the upswing to ₹75,000. Notably, there are minor resistances at ₹73,000 and ₹73,800.

In case gold futures fails to surpass ₹71,300 and declines, it can find support at ₹68,000. A breach of this support can trigger a fall to ₹65,000.

Trade strategy: Stay out now. Go long on gold futures once it breaks out of ₹71,300. Target and stop-loss can be at ₹75,000 and ₹69,500 respectively. After entering the trade, when the contract touches ₹73,800, revise the stop-loss to ₹72,500.

MCX-Silver (₹80,543)

Silver futures (September) saw a considerable fall in price last Monday. However, for the rest of the week, it largely remained sideways. Although it slipped below the support at ₹82,000, there is another key support at ₹80,000.

So long as ₹80,000, holds, there is a chance for the bulls to gain traction. However, a breach of this support can turn the outlook bearish. In such a case, the contract can fall to ₹77,300 or to ₹75,000.

If the contract rallies, it will face a resistance at ₹85,000, a breakout can lift the contract to ₹90,000.

Trade strategy: Buy silver futures if it crosses over ₹85,000. Target and stop-loss can be at ₹90,000 and ₹82,000 respectively. Trail the stop-loss to ₹86,000 when the contract touches ₹88,000.

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