MCX Gold, Silver futures slide; Key levels to watch out this week

Sustained trade below Rs 52,065, can trigger a fall to Rs 51,650 - 51,700 levels on the Gold futures; whereas Rs 57,200 is the key support for Silver futures.

The MCX Gold and Silver futures plunged in early trade on Tuesday, with Gold down around a per cent and Silver down up to 2 per cent, amid disappointing China economic data. Going ahead, here are the key support levels to be watched for the precious metals.

Gold

Bias: Positive

Last Close: Rs 52,579

Support: Rs 52,065

Resistance: Rs 52,600

The overall bias for the MCX Gold October futures remains positive as indicated by the price-to-moving averages action. However, some consolidation at current levels cannot be ruled out as select momentum oscillators were showing signs of tiredness.

Among the key momentum oscillators on the daily chart, the 14-day RSI and the Slow stochastic were seen moving sideways for the last few trading sessions. The MACD too hinted of a possible convergence in the near term. 

In case of a corrective move, Gold futures could dip to Rs 51,650 - Rs 51,700 odd levels, below which the significant support is seen around Rs 51,400 - which is where the 20-DMA and 50-WMA exists.

On the upside, the MCX Gold October futures need to break and sustain above Rs 52,600, for a further rally.

As per the weekly Fibonacci chart, the key support for Gold futures this week is placed at Rs 52,065, below which the commodity could slip to 52,000 and Rs 51,430.

Silver

Bias: Negative

Last Close: Rs 59,299

Resistance: Rs 60,370

Support: Rs 57,200

The MCX Silver September futures traded with a positive bias for most of the trading week, also sustained smartly above the 20-DMA placed at Rs 57,200-odd level. This is likely to act as an immediate support for Silver in the near term.

However, the overall bias basis on the price-to-moving averages action remains negative, as the other key moving averages - 50- , 100- and 200-DMAs are fairly above the short-term moving average at Rs 58,260, Rs 61,180 and Rs 62,560, respectively.

The daily Bollinger Band indicates a likely trading range of Rs 57,200 to Rs 60,370 in the near term, above which the significant moving averages could be the imminent hurdles.

According to the weekly Fibonacci chart, this week the MCX Silver September futures are likely to trade in a broad range of Rs 58,000 to Rs 60,600; with support likely around Rs 58,840 - 58,500 - 58,250. On the upside, Silver futures may face resistance around Rs 59,760 - 60,100 - 60,350.

Break and sustained trade below Rs 58,000-mark, can trigger a slide towards Rs 57,200 and Rs 56,100 odd levels.