Gold and silver extended the rally last week. In terms of dollars, gold and silver appreciated 0.6 per cent and 1.5 per cent last week as they closed at $2,343 and $27.90 per ounce respectively.

Similarly, on the Multi Commodity Exchange, gold futures gained 1.9 per cent to end at ₹71,843 (per 10 gram), whereas silver was up 2.4 per cent to close at ₹82,813 (per kg).

MCX-Gold (₹71,843)

Gold futures (June contract) appreciated and hit a record high of ₹73,958 on Friday before ending the week lower at ₹71,843.

Even though the uptrend is steady, the contract formed a bearish pin bar on the chart on Friday. While this does not confirm a bearish reversal, there is a chance for price moderation.

On the downside, there are support levels at ₹70,000 and ₹68,500. But if bulls regain momentum and push the price up, gold futures can hit ₹75,000 soon.

Trade strategy: The uptrend is steady. But there is a chance for a minor correction in price, given Friday’s intraday movement. So, we recommend staying out for now.

MCX-Silver (₹82,813)

The close above ₹80,000 on April 5 gave a boost to silver futures (May series). It went up last week and hit a record high of ₹86,126 on Friday before closing at ₹82,813.

Like gold futures, silver futures too has formed a bearish pin bar candlestick pattern on Friday, hinting that the price could soften from here. However, the overall trend is up and the downside movement, if any, can be limited.

If the uptrend continues from here, we can expect silver futures to hit ₹90,000. On the other hand, if the contract dips from the current level, it can find support at ₹80,000 and ₹77,800.

Trade strategy: Silver futures could see a dip in price. But the broader trend is bullish, which can restrict a fall. We suggest staying out given the prevailing conditions.

Related Topics
comment COMMENT NOW