Gold and silver broadly remained under selling pressure last week. In terms of dollars, gold and silver lost 1.7 per cent and 0.4 per cent to end the week at $1,976.6 and $23.8 per ounce, respectively.

On the Multi Commodity Exchange (MCX), the gold futures contract was down 0.8 per cent, in line with global trend, and ended at ₹60,379 (per 10 gram). However, the silver futures produced a marginal gain of 0.4 per cent to close at ₹73,321 (per kg).

MCX-Gold (₹60,379)

The June gold futures, despite facing selling pressure, managed to close above the support band of ₹59,000-59,600. In case there is a recovery from here, it might face a barrier at ₹61,800. A breach of this can lift the contract to ₹63,000.

But if the contract falls below ₹59,000, it can see a quick drop to ₹57,500 – a support. Subsequent support is at ₹55,500.

Trade strategy: The pending buy order at ₹59,600 would have been triggered last week. Before that, we recommended longs at ₹60,511. Thus, the average buy price is now at ₹60,056. Retain this trade. However, revise the target lower from ₹62,800 to ₹61,500. Stop-loss can be the same at ₹58,800.

Yet, traders, who wish to avoid risk, exit the longs.

MCX-Silver (₹73,321)

Silver futures closed the week with a gain because of the rally on Friday. Thus, the support at ₹72,000 is holding well for the contract. Although there is some bearishness exhibited by silver futures, until the support at ₹72,000 holds true, further decline is less likely.

That said, a strong support does not guarantee a rally as there is a strong barrier at ₹75,000. So, as it stands, there is a good chance that the contract will start consolidating between ₹72,000 and ₹75,000.

Immediate support below ₹72,000 is at ₹70,000. Subsequent support is at ₹67,000. Resistance above ₹75,000 is at ₹78,500 and ₹80,000.

Trade strategy: We suggest staying out now and wait for the breach of the ₹72,000-75,000 range. But traders with higher risk-appetite can go short if the silver futures move up to ₹74,500. Target and stop-loss can be at ₹72,000 and ₹76,100.