Gold ($3,205/ounce) was down 3.6 per cent whereas silver ($32.30/ounce) lost 1.2 per cent last week. Similarly, in the domestic market, gold futures (₹92,441/10 gm) depreciated 4.2 per cent and silver futures (₹95,318/kg) fell by 1.5 per cent.
MCX-Gold (₹92,441)
Gold futures (June) saw a notable decline in price over the last week. Nevertheless, the contract remains above two key support levels. One, the 50-day moving average at ₹91,800 and two, a rising trendline at ₹90,000.
Until these levels hold true, the bulls will have a chance to regain the traction. If that happens, gold futures can retest the resistance at ₹97,600.
On the other hand, if the support at ₹90,000 is breached, the outlook can turn bearish. In this case gold futures might see a deeper decline to ₹87,000 and ₹85,000, notable support levels.
Trade strategy: As there is a support, traders with high risk appetite can go long on futures at ₹91,300. Target and stop-loss can be ₹95,000 and ₹89,000 respectively.
But if the support at ₹90,000 is breached, go short with a stop-loss at ₹91,500 for a target of ₹87,000.
MCX-Silver (₹95,318)
Silver futures (July) performed relatively better than gold futures over the past week. It continues to trade within the range of ₹93,600-97,100. Just above ₹97,100 is another barrier at ₹99,250.
So, for silver futures to establish a trend, it should breach either ₹93,600 or ₹99,250.
A slip below the support at ₹93,600 can potentially lead to a decline to ₹90,000 and ₹89,000. Whereas a breakout of ₹99,250 can lift the contract to ₹1,03,500.
Trade strategy: As it stands, there is no clarity with respect to the next leg of trend. Therefore, we suggest traders stay out.
Published on May 17, 2025
