MCX Gold may seek support around Rs 51,100-level; Silver remains negative

The MCX Gold October futures is trading near multiple supports in the form of 20-WMA, 20-DMA and 50-DMA; Whereas Silver futures may seek support near its recent low of Rs 54,160-odd level, while the u

The MCX Gold futures declined by 2 per cent last week amid some profit-taking and is seen trading closer to multiple support levels, with an underlying positive bias. On the other hand, bias for Silver futures remains negative. Going ahead, this week here are the key support and resistance levels on the precious metals future contracts.

Gold

Bias: Positive

Last Close: Rs 51,479

Support: Rs 51,200, Rs 51,100

Resistance: Rs 51,850

After a four-week rally, wherein the MCX Gold futures surged almost 5 per cent, last week the yellow-shiny metal slipped 2 per cent amid some profit-taking. The overall bias for MCX Gold October futures, however, remains positive as supported by the price-to-moving averages action.

In the near term, Gold futures may consolidate and trade sideways as they test multiple support levels. As per the weekly chart, MCX Gold is current testing support around the 20-WMA (Weekly Moving Average) at Rs 51,400; below which the commodity has couple of significant supports around the 50-DMA (Daily Moving Average) and 100-DMA at Rs 51,000 and Rs 51,200, respectively.

In case of break and sustained trade below Rs 51,100-level, prices could slide sharply towards Rs 50,500-mark. On the positive side, Gold futures need to sustain above Rs 51,850 to gain upside momentum.

As per the weekly Fibonacci chart, this week Gold October futures may trade in a broad range of Rs 50,950 to Rs 52,000; with support seen around Rs 51,300 - Rs 51,150 - Rs 51,065 and resistance likely around Rs 51,660 - Rs 51,800 - Rs 51,900.

On Monday, MCX Gold 1 kg futures are likely to seek support around Rs 51,390 - Rs 51,360 - Rs 51,335, while on the upside may face resistance around Rs 51,570 - Rs 51,600 - Rs 51,625.

Similarly, MCX Gold Mini futures for September expiry are likely to seek support around Rs 51,425 - Rs 51,395 - Rs 51,365; the contract may find resistance around Rs 51,610 - Rs 51,640 - Rs 51,670.

Silver

Bias: Negative

Last Close: Rs 55,496

Resistance: Rs 57,250, Rs 57,925

Support: Rs 54,380, Rs 53,000

The overall outlook for MCX Silver September futures remains negative based on the price-to-moving averages action, with each of the 20-, 50- and 100-DMA holding below the respective higher moving average. 

Further on the daily chart, the MACD has given a negative divergence, and the Slow Stochastic also has been sloping downwards. Therefore, in the very near term the bias is likely to remain fairly bearish, with the upside seen capped around Rs 57,250-level - its 20-DMA, above which the immediate hurdle is at Rs 57,925.

On the downside, Silver futures are seen drifting towards the lower-end of the Bollinger Band on the daily chart at Rs 54,200-odd level, in the interim the commodity will also test support around its 200-WMA placed at Rs 54,380. The lower-end of the weekly chart indicates support around Rs 53,000-mark.

According to the weekly Fibonacci chart, this week the MCX Silver September futures are likely to trade in a broad range of Rs 53,490 to Rs 57,500; with support likely around Rs 54,780 - Rs 54,250 - Rs 53,875. On the upside, Silver futures may face resistance around Rs 56,210 - Rs 56,735 - Rs 57,120.

On Monday, Silver futures may seek support around Rs 55,135 - Rs 55,020 - Rs 54,910, while on the upside the commodity could face resistance around Rs 55,860 - Rs 55,970 - Rs 56,080.

Similarly, MCX Silver Mini futures may seek support around Rs 55,930 - Rs 55,830 - Rs 55,720; while the Mini contract could face resistance around Rs 56,620 - Rs 56,725 - Rs 56,830 on Monday.

Further, the MCX Silver Micro futures are likely to seek support around Rs 55,865 - Rs 55,745 - Rs 55,620 and might face resistance around Rs 56,660 - Rs 56,785 - Rs 56,910 today.