MCX Gold, Silver futures likely to trade rangebound this week

The MCX Silver December futures may re-test the 200-DMA hurdle placed at Rs 60,900 in the near term.

The MCX Gold and Silver futures are likely to exhibit range-bound movement in the near term amid mixed cues on the technical charts. The key sentimental driver, the 200-DMA level, for MCX Gold futures and Silver futures are placed at Rs 50,758 and Rs 60,900, respectively.

Gold

Bias: Neutral

Last Close: Rs 50,517

Support: Rs 49,800; Rs 49,200

Resistance: Rs 51,500; Rs 52,500

The MCX Gold futures are likely to trade sideways in the coming trading sessions amid mixed signals on the technical charts. Another important thing to note is that, the key moving averages - 20-, 50-, 100- and 200-DMA (Daily Moving Averages) are seen converging into a narrow band of Rs 250-odd range, i.e. between Rs 50,500 - Rs 50,780.

Among the key moving averages, the 200-DMA stands at Rs 50,758, which is likely to act as the key sentiment decider for now. Given the recent peaks and troughs, MCX Gold futures could move in a trading range of Rs 49,800 to Rs 51,500 in the near term. 

The Bollinger Bands on the daily chart, indicates that the broader trading range could be Rs 49,250 to Rs 52,000 levels. Similarly, on the weekly chart Gold futures were seen trapped in a range of Rs 49,200 to Rs 52,500 since mid-February 2022.

As per the weekly Fibonacci chart, this week MCX Gold October futures are likely to trade in a range of Rs 50,045 to Rs 51,200. Gold prices may seek support around Rs 50,420 - Rs 50,265 - Rs 50,155, and may face resistance around Rs 50,830 - Rs 50,985 - Rs 51,095. 

Silver

Bias: Rangebound

Last Close: Rs 57,525

Support: Rs 57,350; Rs 56,380 

Resistance: Rs 60,900

The MCX Silver futures were seen trading below the long-term (200-DMA) since late April 2022. Earlier this month, the commodity attempted to break above the 200-DMA, but failed and prices declined by almost 10 per cent thereafter.

On the positive front, one can see formation of 'higher top' and 'higher bottom' on the daily charts. However, one shall wait for a confirmation as the development is still in early stage.

For now, the Bollinger Bands on the daily chart indicate a broad trading range of Rs 54,085 to Rs 62,000. Silver futures have near supports placed at Rs 57,350 and Rs 56,380 - its 100-DMA and 50-DMA, respectively. On the upside, the key hurdle remains the 200-DMA, now placed at Rs 60,900.

Select momentum oscillators like the MACD and RSI are favourable on the weekly chart, hence it seems likely that Silver futures may re-test levels of Rs 61,000 soon.

According to the weekly Fibonacci chart, this week the MCX Silver December futures may swing in a broad range of Rs 56,285 to Rs 58,940. The Silver contract may seek support around Rs 57,140 - Rs 56,790 - Rs 56,540. On the upside, Silver futures are likely to face resistance around Rs 58,085 - Rs 58,430 - Rs 58,685.