Gold, in dollar terms, fell 0.5 percent last week to close at $2,735 an ounce on Friday. Silver lost 3.9 percent to end the week at $32.4 per ounce.
In the domestic market, gold futures (₹78,867 per 10 gram) rose 0.4 percent and silver futures (₹95,483 per kg) fell 1.7 percent.
MCX Gold (₹78,867)
Gold futures (December) extended the rally and hit a record high of ₹79,775 on Wednesday. However, there was a sharp decline on Thursday, followed by a marginal recovery on Friday.
As it stands now, the uptrend is intact. But ₹80,000 is a potential resistance, which could trigger a corrective decline. If there is a downside move, gold futures may find support at ₹77,400 and ₹76,500. Only a break of the ₹75,000 base can turn the trend bearish.
On the other hand, if gold futures break above ₹80,000, it could open the door for a rally towards ₹85,000, which could even go as high as ₹88,000.
Trading Strategy: Stay outside. Buy gold futures if it crosses above ₹80,000. Target and stop-loss can be ₹77,800 and ₹85,000 respectively.
MCX Silver (₹95,483)
Silver futures, after touching the key resistance of ₹ 1,00,000 almost a fortnight ago, saw a price decline. Currently, it is hovering around ₹95,500 but remains above the support band of ₹93,500-94,300.
If the bears take the contract below ₹93,500, the downswing could extend to ₹88,000. If silver futures recover from current levels, there is a strong barrier at ₹1,00,000. Only a breakout of this can lead to a new uptrend.
Potential resistance above ₹1,00,000 is ₹1,05,000 and ₹1,10,000.
Trading Strategy: Since the trend seems uncertain going forward, it’s best to stay on the sidelines for now. Buy silver futures if it crosses above ₹1,00,000. Target and stop-loss can be ₹1,05,000 and ₹97,800 respectively.
