MCX Gold futures could test Rs 65,000-mark on the upside, chart suggests

Gold futures are up 12 per cent so far this year, and have gained 132 per cent in the last eight years. Chart suggests that bias is likely to remain favourable as long as Gold trades above its 20-MMA.

Gold prices have been on a steady up move since the year 2016, after prices broke above the Rs 28,000 - 30,000 barriers. The monthly chart shows, that the MCX Gold futures have managed to sustain above the 20-MMA (Monthly Moving Average) on almost consistent basis, barring a few misses here and there in the last eight years.

Gold prices have rallied nearly 132 per cent in the last eight years, and are up almost 12 per cent so far in 2023, trading near all-time highs. The MCX Gold February futures had registered a summit at Rs 62,397 in April 2023.

Will the bull-run continue, or will Gold take a breather at current levels? Here's what the chart suggests.

MCX Gold February futures

Bias: Positive

Current Price: Rs 62,064

Support: Rs 60,950

Resistance: Rs 62,400

Potential Targets: Rs 63,150; Rs 64,260; Rs 65,500

The 20-MMA for Gold futures stands at Rs 55,900. Thus, the overall bias for Gold is likely to remain favourable as long as the MCX Gold futures sustain above the 20-MMA.

On the upside, the monthly chart suggests that Gold futures seem on course to test the higher-end of the anticipated trading band at Rs 65,500-odd levels, this implies a potential upside of 5.5 per cent from present levels.

In the interim, Gold futures may face some resistance around its peak at Rs 62,400-level suggests the daily and weekly charts. As per the daily chart, Gold futures will need to break and trade consistently above Rs 62,200 for the up move to gain momentum.

On the flip side, failure to sustain above Rs 62,200 could trigger some profit-taking and prices could dip back towards the 20-DMA (Daily Moving Average) support at Rs 60,950 levels.

According to the quarterly Fibonacci chart, MCX Gold futures are likely to trade with a positive bias for the remainder of the year as long as prices sustain above Rs 59,330. On the upside, Gold could target Rs 63,150 - Rs 64,260.

MCX Silver February futures

Bias: Range-bound

Current Price: Rs 76,340

Resistance: Rs 76,500; Rs 77,000; Rs 77,300

Support: Rs 74,500

The MCX Silver futures have broadly been trading in the Rs 68,000 - Rs 77,000 trading band since March 2023. The shiny white metal has once again reached towards the upper end of the existing trading band, thus indicating likely resistance around Rs 77,000-mark.

Having said that, momentum oscillators both on the daily and weekly chart are in favour of the bulls, hence an upside breakout from the existing trading range cannot be ruled out.

Charts suggest that Silver futures need to break and sustain consistently above Rs 77,300 level for a fresh breakout to emerge. Thereafter, prices can spurt up to Rs 78,800 - Rs 79,200 - the peak reached earlier this year.

Meanwhile, the quarterly Fibonacci chart suggests resistance for the MCX Silver futures around Rs 76,500 level. Failure to sustain above the same can trigger a fall towards Rs 74,500 level.