Gold to remain bullish above Rs 51,600-level; Silver futures await breakout

The bias for MCX Gold August futures is likely to remain bullish as long as the commodity sustains above Rs 51,600, below which prices can dip to Rs 51,300 to Rs 51,200.

Gold

Bias: Bias bullish above Rs 51,600

Last Close: Rs 51,694

Upside Target: Rs 53,500

Downside Support: Rs 51,200

The MCX Gold futures as expected made a decisive move towards the end of last week, with prices ending marginally above the higher-end of the Bollinger Band on the daily chart.

MCX Gold prices need to sustain above Rs 51,600-odd level for further bullishness to continue, below which the next significant support is at Rs 51,300-odd level - which is the 50-DMA (Daily Moving Average).

The weekly chart indicates that as long as Gold futures manage to sustain above Rs 51,200-level, prices can look to rally towards Rs 53,500-level.

Barring the ADX (Average Directional Index), other key momentum oscillators like the MACD and Stochastic Slow look favourable on the weekly chart. The key momentum oscillators including the 14-day RSI and ADX are also in favour of the bulls on the daily chart.

On Monday, MCX Gold Mini July futures might look to seek support around Rs 51,065 - 50,800 - 50,670; whereas the commodity could face resistance around Rs 51,500 - 51,785 - 51,900.

According to weekly Fibonacci chart, MCX Gold August futures this week may move in a broad range of Rs 50,850 to Rs 52,550. Gold futures could seek support around Rs 51,400 - 51,165 - 51,000; whereas on the upside, Gold prices may face resistance around Rs 52,000 - 52,220 - 52,380.

Similarly, Gold Mini July futures are likely to move in a broad range of Rs 50,860 to Rs 52,430 this week. Gold Mini futures are likely to seek support around Rs 51,365 - 51,160 - 51,015, whereas prices on the upside may face resistance around Rs 51,925 - 52,130 - 52,275.

Silver

Bias: Wait for a directional move

Last Close: Rs 61,920

Resistance: Rs 63,635

Support: 60,200

The expected trading band for MCX Silver futures has been getting narrower on the daily charts with Silver futures now consolidating broadly in the range of Rs 60,000 to Rs 63,000 for more than a month. 

The Bollinger Band indicates a tight trading range of Rs 60,800 to Rs 62,500. A decisive move in either direction can trigger a sharp reaction. The price-to-moving average action for the commodity is in favour of the bears, while the key momentum oscillators are mixed on the daily chart.

As per the weekly chart, Silver futures are likely to face resistance around Rs 63,900 on the upside, while seek support around Rs 58,200 on the downside. The price-to-moving average action on the weekly chart too is in favour of the bears.

On Monday, Silver futures may look to seek support around Rs 61,220 - 60,800 odd levels, and may face resistance around Rs 62,600 - 63,000.

According to the weekly Fibonacci chart, this week the MCX Silver July futures are likely to trade in a broad range of Rs 60,200 to Rs 63,635; with support likely around Rs 61,300 - 60,850 - 60,530. On the upside, Silver futures may face resistance around Rs 62,530 - 62,980 - 63,310.

Similarly, MCX Silver Mini June futures this week may seek support around Rs 61,600 - 61,170 - 60,550; while silver prices may face resistance around Rs 62,750 - 63,200 - 63,825.

Further, the MCX Silver Micro June futures could seek support around Rs 61,600 - 61,175 - 60,550 and might face resistance around Rs 62,770 - 63,200 - 63,825 this week.