Precious metals slipped last week. Gold ($3,290/ounce) was down 2 per cent whereas silver ($33/ounce) lost 1.5 per cent. Similarly, in the domestic market, gold futures (₹95,875/10 gm) depreciated 1.5 per cent and silver futures (₹97,015/kg) fell 1.1 per cent.
MCX-Gold (₹95,875)
Gold futures (Aug) drifted lower last week. Nevertheless, it stays above the 21-day moving average at ₹95,740 and a trendline support at ₹94,000. Therefore, the contract retains positive bias.
That said, there is a resistance at ₹97,600. This hurdle should be breached for the bulls to build a sustainable rally. A breakout of ₹97,600 can trigger an upswing to ₹1,00,000 and ₹1,04,500, potential resistance levels.
In case the support at ₹94,000 is taken out, gold futures can extend the decline to ₹92,000 and ₹90,000.
Trade strategy: Stay on the sidelines. Go long on gold futures (Aug) if it breaks out of ₹97,600. The short-term target and stop-loss can be ₹1,00,000 and ₹96,400 respectively.
MCX-Silver (₹97,015)
Silver futures (Jul) lost 1.1 per cent over the last week. Yet, it stays within the sideways range of ₹96,400-99,250. This price band has been the trading range for the contract for nearly two weeks.
If the contract regains traction and surpasses the barrier at ₹99,250, it can rise to ₹1,03,500, a resistance. Subsequent barrier is at ₹1,05,000.
In case the contract declines, it can find support at ₹96,400 and ₹93,600. A break below the latter can turn the near-term outlook weak. In this scenario, silver futures can fall to ₹90,000 and ₹89,000.
Trade strategy: Stay out for now. Buy silver futures (Jul) if it breaks out of the resistance at ₹99,250. Target and stop-loss can be ₹1,03,500 and ₹97,000 respectively.
Published on May 31, 2025
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