Support for MCX Gold seen at Rs 51,865; Silver may dip to Rs 59,000-level

The Rs 51,865-level is the 20-DMA for MCX Gold, below which the next major support is seen at Rs 51,050.

The MCX Gold and Silver futures are likely to consolidate this week. While the overall trend for Gold is positive, the bias for Silver futures seems neutral owing to mixed signals on the daily and the weekly charts.

Gold

Outlook: Consolidation

Last Close: Rs 52,544

Support: Rs 51,865; Rs 51,050

After testing a high of Rs 53,200, the MCX Gold futures have consolidated in the recent trading sessions. Even as the overall trend remains positive, the consolidation phase could see Gold December futures testing support around Rs 51,050-odd level in the upcoming trading sessions.

The price-to-moving average action is seen further strengthening, with the 50-DMA (Daily Moving Average) now clawing its way back above the 100-DMA. The short-term (20-DMA) remains firmly above the other key moving averages at Rs 51,865, which is likely to act as an immediate support for Gold futures.

However, select momentum oscillators, the MACD in particular is showing signs of more tiredness, hence, Gold futures may remain in consolidation mode for some time now.

As per the weekly chart, support for Gold is expected around the 20-WMA (Weekly Moving Average) and 50-WMA at Rs 51,050 and Rs 50,670, respectively.

The weekly Fibonacci chart indicates a likely tight trading range of Rs 52,125 - Rs 52,965 for the week. A break in either direction could trigger a sharper reaction in prices.

On Monday, the MCX Gold 1 kg futures contract may seek support around Rs 52,410 - Rs 52,370 - Rs 52,330, while on the upside the December contract could face resistance around Rs 52,675 - Rs 52,715 - Rs 52,755.

Similarly, the MCX Gold Mini November futures could seek support around Rs 52,270 - Rs 52,235 - Rs 52,195, and on the upside the contract may face resistance around Rs 52,500 - Rs 52,540 - Rs 52,575 today.

Silver

Bias: Neutral

Last Close: Rs 61,676

Target: Rs 59,000

Support: Rs 61,030

Resistance: Rs 63,500

Last week, on multiple occasions Silver futures dipped but managed to hold on to the near-term support at the 20-DMA. The same now stands at Rs 61,030-level. With select momentum oscillators showing negative divergence, this support is likely to be violated in the near future.

As per the daily charts, as and when Silver futures break and trade below the 20-DMA, the commodity could slide towards the 50-DMA, which currently stands at Rs 59,044. The next immediate support for Silver is seen at the lower-end of the Bollinger Bands on the daily chart at Rs 58,800 level.

Overall the trend remains neutral, as the price-to-moving averages action is positive on the daily chart; whereas the same is negative on the weekly chart.

In case of an up move, Silver futures are likely to face resistance around the higher-end of the Bollinger Bands on the daily chart at Rs 63,500-odd level.

According to the weekly Fibonacci chart, this week the MCX Silver December futures may move in a broad range of Rs 60,255 to Rs 63,095. The commodity could seek support around Rs 61,170 - Rs 60,800 - Rs 60,530, while may face resistance around Rs 62,180 - Rs 62,550 - Rs 62,825, during the week.

On Monday, Silver futures may seek support around Rs 61,485 - Rs 61,350 - Rs 61,145, while on the upside the December contract is likely to face resistance around Rs 61,865 - Rs 62,000 - Rs 62,200.

Similarly, MCX Silver Mini November futures are likely to seek support around Rs 61,760 - Rs 61,640- Rs 61,460; whereas the Mini contract could face resistance around Rs 62,100 - Rs 62,215 - Rs 62,400 on Monday.

Further, the MCX Silver Micro November futures could seek support around Rs 61,580 - Rs 61,470 - Rs 61,315 and the Micro contract is expected to counter resistance around Rs 61,865 - Rs 61,975 - Rs 62,130 today.