Upside for MCX Gold seems capped near Rs 51,100; Silver may pullback

The MCX Gold October futures were seen testing support around the 200-DMA; while select momentum oscillators indicate a likely pullback for Silver futures.

The MCX Gold futures were seen testing support around the 200-DMA on the daily chart, while the Silver futures broke and close below the 50-WMA last week. Overall, the upside seems capped for Gold, with potential downside to Rs 48,900-level; while Silver may pullback owing to oversold conditions on the daily chart.

Gold

Bias: Neutral

Last Close: Rs 50,384

Support: Rs 49,880

Resistance: Rs 51,100

The MCX Gold futures cracked sharply in trades last week and were seen testing the 200-DMA (Daily Moving Average) on the chart, placed at Rs 50,300-odd level. In fact, last week, Gold futures tested the 50-WMA (Weekly Moving Average) at 49,880-odd