MCX Gold may scale Rs 53,350 as trend turns positive; Silver eyes Rs 63,725

The near-term support for MCX Gold futures now shifted higher to Rs 52,000-level, whereas Silver futures likely to seek support near 200-DMA at Rs 60,800.

The MCX Gold and Silver futures have seen some positive developments on the daily charts in the recent trading sessions, which helped turn the trend from rangebound to positive for both precious metals. Consequently, the near-term support levels for Gold and Silver too have shifted higher to Rs 52,000 and Rs 60,800, respectively.

Gold

Bias: Positive

Last Close: Rs 52,334

Target: Rs 53,350

Support: Rs 52,000

Resistance: Rs 52,570; Rs 52,600

Last week, the MCX Gold futures have seen a couple of positive developments on the daily chart. Firstly, Gold prices were able to register a higher-high in recent sessions, and secondly, Gold futures broke and managed to sustain above the higher-end of the Bollinger Bands on the daily chart for four straight trading sessions.

However, despite these positive moves, the up move in Gold may curtail as prices seem to be testing hurdle at the higher-end of the Bollinger Band on the weekly chart, and the monthly R3 on the Fibonacci chart. 

To summarize, the near term outlook as per the daily chart is likely to remain positive, provided the commodity sustains above Rs 52,025 - which is the higher-end of the Bollinger Band on the daily chart. On the other hand, the Gold futures need to break and sustain above Rs 52,770 - Rs 52,600 resistance range for a sustained up move.

As and when Gold futures are able to clear the resistance zone, a further rally to Rs 53,350 seems likely.

The key momentum oscillators, both on the daily and the weekly charts seem to be in favour of the bulls. Hence, Gold may get considerable support around the 52,000-level. The price-to-moving averages action is also seen turning favourable with the 20-DMA (Daily Moving Average) at Rs 60,785 now seen crossing the 100-DMA at Rs 50,800.

According to the weekly Fibonacci chart, MCX Gold December futures are likely to trade in a range of Rs 51,140 to Rs 53,525 this week. Gold futures are likely to seek support around Rs 51,910 - Rs 51,600 - Rs 51,370, and may face resistance around Rs 52,750 - Rs 53,070 - Rs 53,300. 

On Monday, the MCX Gold 1 kg futures contract is likely to seek support around Rs 52,150 - Rs 52,090 - Rs 50,035, while on the upside the December contract could face resistance around Rs 52,440 - Rs 52,520 - Rs 52,635.

Similarly, the MCX Gold Mini November futures could seek support around Rs 52,100 - Rs 52,050 - Rs 52,000, and the contract may face resistance around Rs 52,375 - Rs 52,450 - Rs 52,550 today.

Silver

Bias: Cautiously Optimistic

Last Close: Rs 61,571

Target: Rs 63,725

Support: Rs 60,960; Rs 60,800 

Resistance: Rs 62,180; Rs 62,630

Even as Silver futures managed to sustain above the 200-DMA in the last four trading sessions, the overall outlook remains a bit hazy, as the long-term price-to-moving average is still clearly negative. 

The 200-DMA placed at Rs 60,800, is fairly above the other short-term moving averages such as 20-DMA at Rs 58,735, 50-DMA at Rs 57,730 and 100-DMA at Rs 57,180.

As per the weekly chart, Silver futures have topped the 50-WMA (Weekly Moving Average) at Rs 60,955 for the first time since the week ended April 24. The commodity now seems on course to test the 100-WMA placed at Rs 63,725.

Among the key momentum oscillators, the 14-day RSI and MACD are positive, while the Slow Stochastic is showing some signs of exhaustion. The weekly momentum oscillators are also in favour of the bulls. 

According to the weekly Fibonacci chart, this week the MCX Silver December futures may move in a broad range of Rs 59,855 to Rs 63,290. The commodity could seek support around Rs 60,960 - Rs 60,510 - Rs 60,180 during the week, while may face resistance around Rs 62,180 - Rs 62,630 - Rs 62,960.

On Monday, Silver futures are likely to seek support around Rs 60,960 - Rs 60,770 - Rs 60,580, while on the upside the December contract could face resistance around Rs 61,925 - Rs 62,185 - Rs 62,565.

Similarly, MCX Silver Mini November futures are likely to seek support around Rs 61,190 - Rs 61,000 - Rs 60,815; whereas the Mini contract could face resistance around Rs 62,150 - Rs 62,405 - Rs 62,785 on Monday.

Further, the MCX Silver Micro November futures could seek support around Rs 61,245 - Rs 61,060 - Rs 60,880 and the Micro contract is expected to counter resistance around Rs 62,175 - Rs 62,425 - Rs 62,790 today.