Commodity Corner: MCX Gold, Silver futures likely to consolidate

The MCX Gold futures may seek near support around Rs 52,040; whereas Silver futures have multiple key support around Rs 65,235 and Rs 64,600.

Gold

Bias: Consolidation

Resistance: Rs 53,130

Support: Rs 51,630

Last close: Rs 52,261

The MCX Gold futures are currently testing support around the short-term moving averages (20-DMA) on the daily charts, placed at Rs 52,040-odd levels. The next immediate support for the Gold futures is at Rs 51,630-odd levels - its 50-DMA.

As per the price-to-moving average action, the bias remains positive for MCX Gold futures as the prices have managed to sustain above the key moving averages, further the 20-DMA is also above the 50-DMA. According to the daily charts, as long as Gold prices do not decline below Rs 51,630 for a sustained period of the time, Gold can bounce back to Rs 53,130-odd levels - its higher-end of the Bollinger Band on the daily charts.

As per the weekly charts, the upside for the MCX Gold futures seem currently capped around Rs 53,650-odd levels. The commodity may consolidate in the broad range of Rs 50,500 to Rs 53,500 in the coming weeks.

Among the key momentum oscillators, the 14-day RSI (Relative Strength Index) is in neutral mode. The MACD (Moving Average Convergence and Divergence) and the Stochastic too support the possibility of a consolidation. 

According to the weekly Fibonacci chart, MCX Gold futures may trade in a broad range of Rs 51,300 to Rs 53,250, with support expected around Rs 51,920 - 51,670 - 51,480; whereas on the upside Gold futures are likely to face resistance around Rs 52,600 - 52,850 - 53,040.

On Monday, MCX Gold may seek support around Rs 52,050 - 51,980 - 51,920, while can face resistance around Rs 52,380- 52,475 - 52,600.

Similarly, Gold Mini futures are likely to seek support around Rs 52,050 - 51,985 -51,920, and may face resistance around Rs 52,365 - 52,515 - 52,575 in trades today.

Silver

Bias: Cautiously Positive

Resistance: Rs 68,300

Support: Rs 65,235

Last Close: Rs 66,546

Last week, the MCX Silver futures witnessed a steep fall of 3.6 per cent (Rs 2,486) as the commodity tested the higher-end of the Bollinger Band on the weekly charts, and then retraced lower. 

The broader trend on the weekly chart remains marginally negative, with the 20-WMA (Weekly Moving Average) below its 50-WMA. The 20-WMA and 50-WMA are currently placed at Rs 64,600 and Rs 65,235 - where the prices may find support.

As per the daily charts, Silver futures are likely to test support around Rs 65,400-odd levels, which is the lower-end of the Bollinger Band. Sustained trade below the same could trigger a slide towards Rs 64,500 - Rs 64,200 odd levels - which is were strong support exists.

The overall bias as per the daily chart is cautiously positive, as the 20-DMA (Rs 67,675) is above the 50-DMA (Rs 67,150). Further; among the key momentum oscillators the MACD has turned negative on the daily charts. The 14-day RSI and the Stochastic are in neutral mode.

According to the weekly Fibonacci charts, the MCX Silver futures may trade in a broad range of Rs 63,680 to Rs 69,410, with support expected around Rs 65,525 - 64,775 - 64,230; and resistance likely around Rs 67,570 - 68,310 - 68,865.

Today, Silver futures are likely to seek support around Rs 66,100 - 65,970 - 65,835; and may face resistance around Rs 66,985 - 67,120 - 67,260.

The Silver Mini futures may seek support around Rs 66,300 - 66,180 - 66,050; whereas they may face resistance around Rs 66,960 - 67,130 - 67,390.

Similarly, the MCX Silver Micro futures could seek support around Rs 66,480 - 66,300 -66,050 and might face resistance around Rs 67,120 - 67,250 - 67,380 on Monday.