Bias turns positive; Gold may rally towards Rs 58,700, Silver Rs 70,000

The near term bias for MCX Gold April futures is likely to remain bullish as long as the commodity sustains above Rs 57,100.

The MCX Gold and Silver futures have rallied smartly in the last few trading sessions, and in the process the trend has turned positive as the precious metals conquered some of the near-term hurdles. These are the key levels to be watched-out for going ahead.

Gold

Bias: Bullish

Last Close: Rs 57,642
Target: Rs 58,700
Support: Rs 57,100

Resistance: Rs 58,075; Rs 58,440

The MCX Gold futures rallied 5.3 per cent in the last three trading sessions from a low of Rs 54,771 to a high of Rs 57,680. In the process, the select key momentum oscillators have now turned positive.

On Monday, the MCX Gold April futures not only surpassed the near-term hurdles of 20-DMA (Daily Moving Average) at Rs 55,945 and the 50-DMA at Rs 56,330, but also closed above the higher-end of the Bollinger Bands on the daily chart.

Thus implying that the near-term bias is likely to remain bullish as long as Gold futures sustain above Rs 57,100. On the upside, Gold prices can rally towards Rs 58,700 indicates the weekly chart.

The medium-term outlook for Gold continues to remain positive as despite the price correction in February, Gold futures managed to sustain above the 20-WMA (Weekly Moving Average) now placed at Rs 55,030 successfully. 

For the contrarians, Gold prices are seen consolidating around the higher-end of the Bollinger Bands on the monthly chart for the last three months. The bears may want to keep the door open but enforcing a monthly close below Rs 57,400.

According to the weekly Fibonacci chart, Gold futures have given a buy signal and the bias for the remainder of the week is likely to remain bullish as long as Gold prices sustain above Rs 57,030-level. Below which, the next key support levels are placed at Rs 56,850 - Rs 56,700.

On the upside, Gold futures may face some resistance around the Rs 58,075 and Rs 58,440 level, while it attempts to rally towards Rs 58,700.

On Tuesday, the MCX Gold April futures contract is likely to seek support around Rs 57,135 - Rs 56,980 - Rs 56,820, while on the upside the contract may face resistance around Rs 57,935 - Rs 58,150 - Rs 58,460.

Similarly, the MCX Gold Mini April futures are expected to seek support around Rs 57,215 - Rs 57,165 - Rs 57,115, and on the upside the contract may counter resistance around Rs 57,470 - Rs 57,540 - Rs 57,640.

Silver

Bias: Bullish

Last Close: Rs 66,652

Target: Rs 70,130
Support: Rs 65,760; Rs 65,150

Resistance: Rs 67,700; Rs 68,900

The MCX Silver futures soared near about 8 per cent in the last two trading sessions amid rush towards safe haven assets in the backdrop of SVB crisis led sell-off in equities. 

Silver prices seem to have taken support around the 200-DMA at Rs 61,350-odd levels on the daily chart, and then bouncing back sharply. On the upside, the Silver futures are now seen testing resistance around the 50-DMA at Rs 66,750 level, above which the immediate hurdle is seen at Rs 67,250 - in the form of the higher-end of the Bollinger Bands.

On the weekly scale, the Silver prices are attempting to hold above its 20-WMA (Weekly Moving Average) placed at Rs 65,760. As long as the commodity holds above this level, the bias is likely to favour the bulls. Sustained trade above the same can trigger a rally towards Rs 71,900 level.

According to the weekly Fibonacci chart, the MCX Silver May futures have crossed the weekly R3 pivot placed at Rs 65,150 convincingly. Hence, the bias for the remainder of the week is likely to remain bullish as long as the Silver futures trade above this level.

The monthly Fibonacci charts indicate possible upside target for Silver at Rs 67,700 - Rs 68,900 - Rs 70,130.

On Tuesday, Silver May futures are likely to seek support around Rs 65,900 - Rs 65,350 - Rs 64,540, while on the upside the contract may face resistance around Rs 67,400 - Rs 67,960 - Rs 68,770.

Similarly, MCX Silver Mini April futures could seek support around Rs 65,960 - Rs 65,425 - Rs 64,650; whereas on the upside the Mini contract may meet resistance around Rs 67,400 - Rs 67,935 - Rs 68,700 today.

Further, the MCX Silver Micro April futures are likely to seek support around Rs 65,960 - Rs 65,425 - Rs 64,650; whereas the contract could counter resistance around Rs 67,400 - Rs 67,935 - Rs 68,700 on Tuesday.