Upside seems limited for MCX Gold; Silver may rally past Rs 71,000-level

The MCX Gold futures are likely to face considerable resistance around Rs 53,500-odd levels; MCX Silver futures can test Rs 71,300 on the upside.

Gold

Bias: Consolidation

Resistance: Rs 53,500

Support: Rs 52,500

Last week, the MCX Gold prices rallied more than Rs 1,100 from the lows of the week to a high of Rs 53,150. The commodity, however, now seems to be facing some resistance around the higher-end of the Bollinger Band on the daily charts.

A study of the daily and weekly charts for Gold futures, indicate likely resistance around Rs 53,500 to Rs 54,000. The key momentum oscillators on the daily and the weekly charts are also indicating of a likely consolidation in the near term.

In case, MCX Gold futures are unable to sustain above Rs 53,500-odd level, one can expect some profit-taking with prices declining to Rs 52,500-52,300.

Among the key momentum oscillators on the daily charts, the ADX (Average Directional Index) and the MACD (Moving Average Convergence and Divergence) are in favour of the bulls, while the 14-day RSI (Relative Strength Index) is nearing the overbought territory, and the Slow Stochastic hints towards a likely consolidation.

According to the daily Fibonacci chart, Gold is likely to seek support around Rs 52,835-52,780-52,740; whereas it may face resistance around Rs 53,150-53,200-53,250 on Monday.

As per the weekly Fibonacci chart, Gold may trade in a broad range of Rs 52,300 to Rs 53,700, with support expected around Rs 52,550 and Rs 52,430 and resistance likely around Rs 53,420 and Rs 53,550.

Similarly, Gold Mini may seek support around Rs 52,600-52,540-52,480, and is likely to face resistance around Rs 52,990-53,050-53,110.

As per the weekly Fibonacci chart, Gold Mini is likely to in a broad range of Rs 52,120 to Rs 53,470, with support likely around Rs 52,380 and Rs 52,250 and resistance expected around Rs 53,200 and Rs 53,335.

Silver

Bias: Positive

Target: Rs 71,300

Support: Rs 68,000

Following last week's strong rally, MCX Silver futures seem poised for some more room on the upside. The weekly charts, indicate a likely target of around Rs 71,300-odd levels, above which prices can spurt to Rs 72,200.

The key momentum oscillators on the daily charts are clearly in favour of the bulls, with the 14-day RSI, MACD and Slow Stochastic indicating strength. The price-to-moving averages action is also favourable for the counter both on the daily and the weekly charts.

As per the weekly Fibonacci charts, MCX Silver may trade in a broad range of Rs 67,400 to Rs 70,700, with support expected around Rs 68,000-67,700-67,400; and resistance likely around Rs 70,050-70,370-70,700.

Similarly, Siliver Mini may seek support around Rs 68,120-67,820-67,520; whereas it may face resistance around Rs 70,050-70,350-70,650 this week.

Further, MCX Silver Micro futures could seek support around Rs 68,120-67,820-67,520 and might face resistance around Rs 70,070-70,370-70,670.