Gold to remain bullish above Rs 55,100; Silver may remain volatile

On the upside, Gold futures can rally to Rs 56,580 during the course of the month.

The MCX Gold futures were seen trading on a buoyant note in the first week of 2023, with the commodity finishing with a strong gain of 1.3 per cent. Silver futures on the other hand, traded on a volatile note.

Gold

Bias: Bullish

Last Close: Rs 55,730

Target: Rs 56,580

Support: Rs 55,100

After a 14 per cent rally in 2022, the MCX Gold futures started the New Year 2023, with a 1.3 per cent weekly gain. The MCX Gold March futures rallied nearly 2 per cent in intra-week trades to touch a high of Rs 56,010.

Gold prices are seen trading with a positive bias on multiple time-frames. The monthly outlook indicates, that Gold futures are likely to trade with a bullish bias as long as Gold prices sustain above Rs 51,100 level.

The MCX Gold futures have also given a 'Buy' signal on the monthly Fibonacci chart, thus indicating the next likely upside targets of Rs 56,280 and Rs 56,580 during the course of the month.

On the flip side, a reversal and consistent trade below Rs 51,100, could trigger a short-term correction in prices. 

On the daily and the weekly scale, Gold prices are seen trending around the higher-end of the respective Bollinger Bands at Rs 55,800 and Rs 55,840. Further, the 20-DMA at Rs 51,125 also near-about coincides with the monthly support.

According to the weekly Fibonacci chart, this week the MCX Gold February futures are likely to trade in a range of Rs 51,130 to Rs 56,330; with the Gold prices expected to seek support around Rs 55,515 - Rs 55,360 - Rs 55,245, and may face resistance around Rs 55,940 - Rs 56,100 - Rs 56,330.

On Monday, the MCX Gold February futures contract is likely to seek support around Rs 55,620 - Rs 55,540 - Rs 55,420, while on the upside the contract may counter resistance around Rs 55,920 - Rs 55,980 - Rs 56,040.

Similarly, the MCX Gold Mini February futures may move in a trading band of Rs 55,325 to Rs 55,935, with support expected around Rs 55,520 - Rs 55,440 - Rs 55,380, and on the upside resistance likely around Rs 55,740 - Rs 55,820 - Rs 55,880 today.

Silver

Bias: Neutral

Last Close: Rs 69,413

Support: Rs 67,000

Resistance: Rs 71,500

The MCX Silver futures witnessed a volatile start to the year 2023. The March contract tumbled over 2 per cent in intra-week trades, before settling with a minor loss of 0.3 per cent last week.

On the weekly scale, Silver futures are seen consolidating in a broad range of Rs 67,000 to Rs 70,500 in the last four trading weeks. As per the monthly chart, Silver futures need to break and close above Rs 71,500 level for fresh upside momentum to emerge.

For now, the daily chart suggests a trading range of Rs 69,000 (20-DMA) to Rs 70,500. Sustained trade the 20-DMA could trigger a corrective move towards the lower-end of the Bollinger Band on the daily chart at Rs 67,600.

As per the monthly Fibonacci chart, Silver futures have given a 'Mixed' signal. Thus, indicating the possibility of more volatility in the month ahead. On the upside, Silver futures can rally up to Rs 73,940, whereas on the downside, they can slip to Rs 64,885 during the course of the month.

According to the weekly Fibonacci chart, the MCX Silver March futures this week may swing in a broad range of Rs 67,145 to Rs 71,210. Silver prices are likely to seek support around Rs 68,455 - Rs 67,920 - Rs 67,535, while resistance on the upside can be expected around Rs 69,900 - Rs 70,435 - Rs 70,825.

On Monday, Silver March futures may seek support around Rs 68,960 - Rs 68,800 - Rs 68,565, while on the upside the Silver contract may counter resistance around Rs 69,550 - Rs 69,675 - Rs 69,800.

Similarly, MCX Silver Mini February futures could seek support around Rs 67,950 - Rs 67,800 - Rs 67,580; whereas on the upside the Mini contract may face resistance around Rs 68,520 - Rs 68,630 - Rs 68,740 on Monday.

Further, the MCX Silver Micro February futures are likely to seek support around Rs 68,930 - Rs 68,785 - Rs 68,575; whereas the contract could face resistance around Rs 69,470 - Rs 69,580 - Rs 69,685 today.