MCX Gold likely to consolidate; Silver may re-test Rs 70,000

The MCX Gold futures are likely to consolidate in a trading band of Rs 56,100 to Rs 57,300 in the coming trading sessions.

The MCX Gold and Silver futures have been consolidating in the recent weeks following strong gains in the preceding weeks. The overall bias for Gold futures remains positive, while Silver futures may look to bounce back in the near term.

Gold

Bias: Positive

Last Close: Rs 56,857

Support: Rs 56,100

Resistance: Rs 57,300

Even as Gold prices consolidate at higher levels, the overall bias continues to remain positive on the basis of price-to-moving averages action, and other momentum factors.

The MCX Gold futures have sustained above the 20-DMA (Daily Moving Average) now since early November 2022 and prices rallied over 12 per cent during the period.

Select key momentum oscillators like the 14-day RSI and the Slow Stochastic are in overbought zone for quite some time now, but yet to give a negative divergence.

In the week ahead, Gold futures may consolidate in the range of Rs 56,100 to Rs 57,300, i.e. the 20-DMA on the downside, and the higher-end of the Bollinger Bands on the daily chart on the upside.

As per the quarterly Fibonacci chart, last week, Gold February futures paused precisely near the R1 (resistance) at Rs 57,132. Traders need to keep an eye on the same, as failure to surpass this could trigger some profit-taking in the precious metal.

Accordingly to the weekly Fibonacci chart, this week, the MCX Gold February futures are likely to seek support around Rs 56,625 - Rs 56,550 - Rs 56,480, and on the upside the contract is expected to face resistance around Rs 57,090 - Rs 57,160 - Rs 57,235.

On Monday, the MCX Gold February futures contract may seek support around Rs 56,725 - Rs 56,685 - Rs 56,645, while on the upside the contract may counter resistance around Rs 56,990 - Rs 57,030 - Rs 57,070.

Similarly, the MCX Gold Mini February futures are expected to seek support around Rs 56,640 - Rs 56,590 - Rs 56,545, and on the upside the contract could face resistance around Rs 56,940 - Rs 56,985 - Rs 57,035 today.

Silver

Bias: Neutral

Last Close: Rs 68,547

Support: Rs 67,600; Rs 67,050

Resistance: Rs 70,000

The MCX Silver March futures have been consolidating near the lower-end of the anticipated trading range for more than a week now. The Rs 67,600 and Rs 67,050 are the significant support levels for Silver in the near term.

As long as Silver prices sustained above the same, the commodity will look to pullback towards the higher-end of the anticipated trading range, thus indicating a target of Rs 70,000-mark.

The key momentum oscillators are indicating mixed signals, with the 14-day RSI in neutral mode, and MACD negative. The ADX index, however, has firmed-up recently, which hints of a strong directional move in the coming trading sessions.

On the other hand, momentum oscillators on the weekly chart seem to be cooling-off following the December quarter rally.

According to the weekly Fibonacci chart, the MCX Silver March futures, this week, may swing in a trading band of Rs 66,900 to Rs 69,770, with support expected around Rs 67,815 - Rs 67,440 - Rs 67,165. On the upside, the counter could face resistance around Rs 68,840 - Rs 69,220 - Rs 69,500.

On Monday, Silver March futures are likely to seek support around Rs 67,965 - Rs 67,845 - Rs 67,740, while on the upside the contract may counter resistance around Rs 68,690 - Rs 68,800 - Rs 68,915.

Similarly, MCX Silver Mini February futures could seek support around Rs 68,120 - Rs 68,020 - Rs 67,925; whereas on the upside the Mini contract may face resistance around Rs 68,750 - Rs 68,850 - Rs 68,945 today.

Further, the MCX Silver Micro February futures are likely to seek support around Rs 68,120 - Rs 68,020 - Rs 67,925; whereas the contract could face resistance around Rs 68,750 - Rs 68,845 - Rs 68,940 on Monday.