Decisive move likely in MCX Gold this week; Silver futures may consolidate

The Rs 50,975-level is the pivot point for MCX Gold futures this week; Silver futures may trade in a broad range of Rs 60,165 to Rs 63,175 this week.

Gold

Bias: Decisive move likely

Resistance: Rs 51,500

Support: Rs 50,700

The MCX Gold futures are seen consolidating in a narrow trading band of Rs 800, within the 20-DMA placed at Rs 50,700-odd level and the higher-end of the Bollinger Band on the daily charts at Rs 51,500-odd level. 

The weekly chart indicates Rs 50,975 as the key pivot point for the bullish and bearish expectation for the week. Sustained trade above Rs 50,975 can trigger an upside rally towards Rs 53,000-mark, provided Rs 51,500 is taken off with strong volume. On the flip side, sustained trade below Rs 50,975, can trigger a slide towards Rs 49,000-level, only after breaking the support at Rs 50,700 decisively.

Select key momentum oscillators on the daily chart are in favour of the bulls, while few of them are indicating signs of weakness on the weekly charts. The ADX is seen strengthening-up thus we may see a strong directional move in the near term.

According to weekly Fibonacci chart, MCX Gold August futures this week may move in a broad range of Rs 50,750 to Rs 51,860. Gold futures could seek support around Rs 51,110 - 50,965 - 50,860; whereas on the upside, Gold prices may face resistance around Rs 51,500 - 51,650 - 51,755.

Similarly, Gold Mini July futures are likely to move in a broad range of Rs 50,230 to Rs 52,350 this week. Gold Mini futures are likely to seek support around Rs 50,910 - 50,630 -50,430, whereas prices on the upside may face resistance around Rs 51,665 - 51,940 - 51,150.

On Monday, MCX Gold Mini July futures might look to seek support around Rs 51,065 - 50,800 - 50,670; whereas the commodity could face resistance around Rs 51,500 - 51,785 - 51,900.

Silver

Bias: Consolidation

Last Close: Rs 61,669

Resistance: Rs 63,175

Support: 60,165

The MCX Silver futures continue to trade with a marginally negative bias both on the daily and the weekly charts. As per the price-to-moving average action the bias is negative on the daily charts, as the 20-DMA placed at Rs 61,250 level is way below its other key moving averages.

Similarly, on the weekly chart Silver prices have sustained below all key moving averages now for six weeks in a row. The weekly chart indicates a conflux of resistances in the range of Rs 64,000 to Rs 65,000. At the same time, the daily chart indicates multiple resistances’ for the commodity in the range of Rs 63,000 to Rs 64,600.

Among the key momentum oscillators, the MACD and the 14-day RSI are in favour of the bulls on the daily charts, while the same is reverse in case of the weekly chart. Given the mixed indications, Silver prices may witness whip-saw trades in the near future.

According to the weekly Fibonacci chart, this week the MCX Silver July futures are likely to trade in a broad range of Rs 60,165 to Rs 63,175; with support likely around Rs 61,130 - 60,740 - 60,450. On the upside, Silver futures may face resistance around Rs 62,200 - 62,600 - 62,885.

The daily Fibonacci charts, indicates key support levels for MCX Silver futures on Monday at Rs 61,370 - 61,150 - 60,830; whereas resistance can be expected around Rs 61,970 - 62,350 - 62,510.

Similarly, MCX Silver Mini June futures on Monday may seek support around Rs 61,680 - 61,475 - 61,175; while silver prices may face resistance around Rs 62,450 - 62,600 - 62,750.

Further, the MCX Silver Micro June futures could seek support around Rs 61,700 - 61,490 -61,340 and might face resistance around Rs 62,455 - 62,605 - 62,755 today.