Gold experienced a minor correction, but silver shot up last week. In terms of dollars, the former softened 1 per cent and the latter gained 3.7 per cent to close at $2,155.6 and $25.2 per ounce, respectively.
On the Multi Commodity Exchange, gold futures lost 0.7 per cent to end at ₹65,542 (per 10 gram), whereas silver futures was up 1.9 per cent to close at ₹75,650 (per kg).
MCX-Gold (₹65,542)
Gold futures (April contract), after seeing a dip in the early part of last week, was then moving in a narrow range. Yet, the overall bull trend remains intact.
The contract is expected to resume the uptrend either from the current level or after seeing a decline to ₹64,800. Gold futures can rally to ₹68,000 and then to ₹70,000 in the short term.
In case the price falls below ₹64,800, it can find support between ₹63,800 and ₹64,000. Until the support at ₹63,800 remains valid, the inclination will be bullish.
Trade strategy: Last week, we suggested buying gold futures at ₹66,000. Hold this position. Accumulate at ₹64,800. Retain the stop-loss at ₹63,900.
When the contract goes past ₹67,000, raise the stop-loss to ₹65,800. Liquidate the longs at ₹68,000.
MCX-Silver (₹75,650)
Silver futures’ (May series) gain happened in the second half of last week. It closed above the 200-day moving average at ₹74,800, a bullish sign.
We expect the upswing to extend to ₹77,000, a resistance. Subsequent resistance is between ₹79,000 and ₹80,000.
So long as the silver futures trade above ₹74,000, the trend will be bullish. Support below ₹74,000 is at ₹73,000, around which both the 20- and 50-day moving averages coincide.
Trade strategy: We recommended going long on silver futures at ₹72,280 a couple of weeks ago. Hold this trade. But move the stop-loss up from ₹72,700 to ₹73,500.
When the contract goes above ₹76,000, tighten the stop-loss to ₹74,500. Book profits at ₹76,700.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.