Despite pullback, MCX Gold, Silver futures face multiple hurdles ahead

The MCX Gold futures are likely to face resistance around Rs 51,670, while Silver futures may face hurdle at Rs 59,030.

Gold and Silver prices logged smart gains last week after US Federal chairman Jerome Powell hiked interest rates for the fourth time in 2022. Despite the pullback, both Gold and Silver need to claw back above multiple hurdles for the overall trend to turn favourable technically.

Here's what to expect for Gold and Silver futures this week: 

Gold

Bias: Neutral

Last Close: Rs 51,430

Support: Rs 51,156

Resistance: Rs 51,670, Rs 52,750

Despite, the 1.5 per cent rally last week the outlook for MCX Gold futures remain tepid, as the price-to-moving average action continues to favour the bears. 

The 20-DMA (Daily Moving Average) at Rs 50,711, is below the 50-DMA at Rs 50,830, and both as below the 100-DMA at Rs 51,156. The only positive indicator is that time and again Gold has managed to sustain above the 200-DMA, now placed at Rs 49,915.

As per the daily chart, Gold futures are now within striking distance of the higher-end of the Bollinger Band at Rs 51,670. If Gold prices are able to break and sustain above the same, the up move may then extend towards Rs 52,750.

Among the key momentum oscillators, the 14-day RSI (Relative Strength Index) and the MACD (Moving Average Convergence Divergence) are in favour of the bulls. The Slow Stochastic, however, has entered overbought zone.

According to the weekly Fibonacci chart, MCX Gold August futures this week may move in a range of Rs 50,780 to Rs 52,080. Gold futures are likely to seek support around Rs 51,200 - 51,025 - 50,900; whereas on the upside, Gold prices can face resistance around Rs 51,660 - 51,835 - 51,955.

On Monday, MCX Gold August futures are likely to seek support around Rs 51,300 - 51,260 - 51,220; whereas Gold futures may face resistance around Rs 51,560 - 51,600 - 51,640.

Similarly, Gold Mini August futures could seek support around Rs 51,315 - 51,285 - 51,255; whereas on the upside the commodity is likely to face resistance around Rs 51,520 - 51,555 - 51,585 on Monday.

Silver

Bias: Negative

Last Close: Rs 58,352

Resistance: Rs 59,030

Support: Rs 56,250

The MCX Silver futures surged almost 6 per cent last week after the US Federal Reserve hiked interest rates, and partly due to short-covering as the commodity was under selling pressure since early June 2022. 

Silver futures have now managed to break and close above the 20-DMA for two consecutive trading sessions. However, the commodity faces multiple hurdles ahead as the commodity attempts recovery of the lost ground.

The price-to-moving averages actions remains strongly in favour of the bears, with the 200-DMA above all other short-term moving averages. 

In terms of resistances, Silver prices are currently testing resistance around the higher-end of the Bollinger Band on the daily chart at Rs 58,430, above which the next immediate hurdle is at Rs 59,030 - its 50-DMA. 

Among the key momentum oscillators, the 14-day RSI and MACD are in favour of the bulls, while the Slow Stochastic has entered overbought zone. In case of a correction, Silver futures could slip towards its 20-DMA at Rs 56,250.

According to the weekly Fibonacci chart, this week the MCX Silver September futures are likely to trade in a broad range of Rs 55,710 to Rs 60,990; with support likely around Rs 57,410 - 56,720 - 56,215. On the upside, Silver futures may face resistance around Rs 59,290 - 59,985 - 60,490.

On Monday, Silver futures are likely to seek support around Rs 57,960 - 57,840 - 57,715, while on the upside the commodity might face resistance around Rs 58,745 - 58,865 - 58,985.

Similarly, MCX Silver Mini futures may seek support around Rs 55,600 - 55,535 - 55,465; while Silver could face resistance around Rs 56,040 - 56,105 - 56,170 on Monday.

Further, the MCX Silver Micro futures could seek support around Rs 55,650 - 55,585 - 55,520 and may face resistance around Rs 56,075 - 56,140 - 56,205 today.