'Buy the dips' in MCX Gold; Silver needs to hold Rs 60,100, charts show

On the upside, the MCX Gold December futures can retest it's last week high of Rs 53,200.

The overall trend for MCX Gold futures remains positive, and one can look for buying opportunities on dips closer to the key support levels of Rs 52,300 and Rs 52,050, below which a test of the 20-DMA seems possible. Silver futures on the other hand need to survive above the 20-DMA at Rs 60,100-odd level for an up move to resume.

Gold

Bias: Positive

Last Close: Rs 52,649

Target: Rs 53,350

Support: Rs 52,300; Rs 52,050

After touching a high at Rs 53,200, Gold futures witnessed some profit-taking at higher levels last week. Technically, the short-term trend which turned positive in the preceding week, now suggest that Gold can be bought on dips in the coming trading sessions for fresh gains.

For the first-time since early July 2022, the short-term (20-DMA) is seen trading above the other key moving averages. The 20-DMA (Daily Moving Average) now at Rs 51,400-odd level shall be the significant support for Gold going ahead in case of a considerable corrective move.

The other key moving averages - 50-, 100- and 200-DMAs are seen in the range of Rs 50,700- Rs 51,050. The near-term support for MCX Gold December futures is seen at Rs 52,300 followed by Rs 52,050. A break of the same, could see Gold prices dip towards the 20-DMA.

On the upside, Gold futures can retest last week's high of Rs 53,200. Gold futures need to break and sustain above Rs 53,130-level for further strength, indicates the weekly chart.

Among the key momentum oscillators, the 14-day RSI is near overbought zone. The MACD and the Slow Stochastic too are showing some signs of tiredness; hence Gold prices may consolidate in the near term.

According to the weekly Fibonacci chart, MCX Gold December futures are likely to trade in a range of Rs 52,100 to Rs 53,200 this week. Gold futures are likely to seek support around Rs 52,450 - Rs 52,300 - Rs 52,200, and may face resistance around Rs 52,850 - Rs 52,990 - Rs 53,100. 

On Monday, the MCX Gold 1 kg futures contract may seek support around Rs 52,470 - Rs 52,430 - Rs 52,375, while on the upside the December contract could face resistance around Rs 52,750 - Rs 52,820 - Rs 52,925.

Similarly, the MCX Gold Mini November futures could seek support around Rs 52,355 - Rs 52,300 - Rs 52,250, and on the upside the contract may face resistance around Rs 52,615 - Rs 52,685 - Rs 52,790 today.

Silver

Bias: Neutral

Last Close: Rs 60,927

Support: Rs 60,100

After consolidating at higher levels for more than a week, the MCX Silver December futures have once again dipped below the 200-DMA, and now seen testing support around the 20-DMA.

The 20-DMA at Rs 60,100-odd level is the key support in the near term. Sustained trade below the same could trigger a fall in Silver futures to Rs 58,550 and Rs 57,300 - its 50-DMA and 100-DMA, respectively.

On the upside, Silver futures need to sustain above the 200-DMA at Rs 60,800-odd level, for the up move to resume.

Select momentum oscillators, like the RSI and MACD have given a negative divergence on the daily chart. Hence, the likelihood of Silver futures breaking the 20-DMA supports seems higher.

According to the weekly Fibonacci chart, this week the MCX Silver December futures may move in a broad range of Rs 59,385 to Rs 62,470. The commodity could seek support around Rs 60,380 - Rs 59,975 - Rs 59,680, while may face resistance around Rs 61,475 - Rs 61,880 - Rs 62,175, during the week.

On Monday, Silver futures may seek support around Rs 60,530 - Rs 60,410 - Rs 60,285, while on the upside the December contract is likely to face resistance around Rs 61,155 - Rs 61,325 - Rs 61,565.

Similarly, MCX Silver Mini November futures are likely to seek support around Rs 60,825 - Rs 60,725 - Rs 60,620; whereas the Mini contract could face resistance around Rs 61,500 - Rs 61,600 - Rs 61,700 on Monday.

Further, the MCX Silver Micro November futures could seek support around Rs 60,870 - Rs 60,770 - Rs 60,670 and the Micro contract is expected to counter resistance around Rs 61,385 - Rs 61,525 - Rs 61,725 today.