Short-term trend for MCX Gold turns positive; Silver remains negative

This week, the MCX Gold October futures could consolidate in the range of Rs 51,150 to Rs 52,870; Silver futures need to break above Rs 58,835 for gaining strength.

The bias for precious metal commodities seems to have turned mixed, with bulls likely to have the upper-hand for the MCX Gold futures, while Silver futures remain in bears grip. 

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

Gold

Bias: Positive

Last Close: Rs 52,301

Support: Rs 51,150

Resistance: Rs 52,870

Gold futures have traded with a positive bias in the recent trading sessions after the US Federal Reserve hike rates earlier this month. 

The MCX Gold October futures are currently seen trending along the higher-end of the Bollinger Band on the daily charts, around Rs 52,270-odd level. Further, the short-term trend for the Gold has turned positive, as the 20-DMA (Daily Moving Average) placed at Rs 50,907 has crossed the 50-DMA at Rs 50,902.

This week, Gold futures could consolidate. The bias has turned positive with near support seen around the 100-DMA at Rs 51,150. On the upside, the yellow shiny metal has some resistance around Rs 52,870-level - which is the higher-end of the Bollinger Band on the weekly chart.

Among the key momentum oscillators, the weekly RSI and the Slow Stochastic are in favour of the bulls. Thus, further upside seems likely.

According to the weekly Fibonacci chart, MCX Gold October futures this week may move in a range of Rs 51,065 to Rs 53,535. Gold futures are likely to seek support around Rs 51,860 - 51,535 - 51,300; whereas on the upside, Gold prices can face resistance around Rs 52,740 - 53,065 - 53,300.

On Monday, MCX Gold October futures are likely to seek support around Rs 52,225 - 52,200 - 52,175; whereas Gold futures may face resistance around Rs 52,380 - 52,400 - 52,425.

Similarly, Gold Mini September futures could seek support around Rs 51,470 - 51,420 - 51,370; whereas on the upside the commodity is likely to face resistance around Rs 51,810 - 51,860 - 51,915 on Monday.

Silver

Bias: Negative

Last Close: Rs 57,364

Resistance: Rs 58,535

Support: Rs 56,420

Despite the recent 8.5 per cent pullback in the MCX Silver September futures, the bias for the commodity remains negative as the price-to-moving averages action remains unfavourable on the daily chart.

However, the weekly chart offers a ray of hope, as Silver futures have consistently found support around the 200-WMA (Weekly Moving Average) at Rs 54,300-odd level, and select momentum oscillators like the MACD and ADX Index are showing some signs of exhaustion of the current trend.

In the very near term, Silver futures may look to seek support around the 20-DMA at Rs 56,420, below which prices could slide to Rs 54,300 to 53,875.

On the upside, Silver futures need to cross and sustain above Rs 58,535, for the bulls to gain some strength. Post which, a sharp rally to Rs 61,600 to Rs 62,600, cannot be ruled out.

According to the weekly Fibonacci chart, this week the MCX Silver September futures are likely to trade in a broad range of Rs 55,990 to Rs 58,740; with support likely around Rs 56,875 - 56,515 - 56,250. On the upside, Silver futures may face resistance around Rs 57,850 - 58,215 - 58,480.

On Monday, Silver futures may seek support around Rs 56,750 - 56,550 - 56,360, while on the upside the commodity could face resistance around Rs 57,985 - 58,175 - 58,365.

Similarly, MCX Silver Mini futures may seek support around Rs 57,600 - 57,365 - 57,020; while the Mini contract could face resistance around Rs 58,250 - 58,485 - 58,830 on Monday.

Further, the MCX Silver Micro futures are likely to seek support around Rs 57,690 - 57,455 - 57,115 and might face resistance around Rs 58,325 - 58,560 - 58,900 today.