The ongoing banking crisis in the West propelled precious metals last week. Gold and silver, in dollar terms, appreciated 6.5 and 10.2 per cent to end the week at $1,989.3 and $22.61 per ounce respectively.

The prices also soared in the domestic market. The futures contract of gold and silver on the Multi Commodity Exchange (MCX) was up 5.8 per cent and 8.9 per cent respectively. The April gold futures closed at ₹59,383 (per 10 gram) and the May silver futures ended at ₹68,501 (per kg).

The charts indicate that both the precious metals are set to see another upswing in price in the coming weeks.

MCX-Gold (₹59,383)

The gold futures (continuous contract) hit an all-time high of ₹59,461 on Friday before closing a little lower at ₹59,383. Thus, our target of ₹55,700 for the longs were hit. The momentum appears strong, and we might see further upside from here.

The contract may rally to ₹63,000 in the short term. The question of weakness will only arise if the price drops below the support at ₹56,300. Until then, the dips are likely to be bought. Probably we might see a minor correction to ₹58,000 after gold futures touch ₹60,000.

Trade strategy: Go long at the current level of ₹59,383. Add more longs if the price softens to ₹58,000. Place initial stop-loss at ₹56,300.

When the price rises above ₹61,000, alter the stop-loss to ₹59,800. When the contract touches ₹62,000, move the stop-loss further up to ₹61,000. Book profits at ₹63,000.

MCX-Silver (₹68,501)

The silver futures broke through the roadblock at ₹65,000 and moved up further to end the week at ₹68,501. Although there was some consolidation mid-week, the rally on Friday means that the upward momentum is strong.

We anticipate more rally in the short term and the contract is well positioned to touch ₹70,000-mark. Above this level lies a resistance at ₹72,000. Subsequent barrier is at ₹74,000.

Until the price stays above ₹65,000 the bears stand no chance against the bulls. However, a breach of this support can drag the contract to ₹61,500. But that looks less likely at this juncture.

Trade strategy: We had suggested to go long if silver futures moved above ₹65,000. This occurred last week and traders who have bought can retain the trade. There is no change in the target of ₹69,500. But revise the stop-loss from ₹62,500 to ₹65,600.

After booking profits at ₹69,500 fresh trades can be considered if the contract goes past the hurdle at ₹70,000.