Rs 51,100-level remains a key hurdle for Gold futures; Silver tests 200-DMA

The upside for MCX Gold October futures is seen capped around Rs 51,100-level for now. On the other hand, Silver futures may consolidate following the near 5 per cent rally last week.

After a week of consolidation, select momentum oscillators are hinting towards a possible pullback for the MCX Gold futures; however, Rs 51,100-level remains a major hurdle. On the other hand, Silver futures are once again seen testing the key support around the 200-DMA.

Gold

Bias: Neutral

Last Close: Rs 50,521

Support: Rs 50,065; Rs 49,880

Resistance: Rs 51,100

After three weeks of decline, the MCX Gold futures last week managed to eke out gains amid consolidation at lower levels. The overall bias remains neutral, as Gold futures trade below key moving averages, while select momentum oscillators are hinting towards a possible pullback from oversold levels.

Among the momentum oscillators, MACD in particular is showing some signs of a pullback.

However, for now, Rs 51,100-level remains the major hurdle for the Gold futures on the upside. As long as the commodity trades below this level, a re-test of sub Rs 50,000-mark seems possible.

As per the weekly Fibonacci chart, this week Gold October futures may trade in a relatively narrow range of Rs 50,065 to Rs 50,975; with support seen around Rs 50,360 - Rs 50,240 - Rs 50,155 and resistance likely around Rs 50,680 - Rs 50,800 - Rs 50,890. 

On Monday, MCX Gold 1 kg October futures are likely to seek support around Rs 50,375 - Rs 50,330 - Rs 50,280, while on the upside the contract may face resistance around Rs 50,670 - Rs 50,715 - Rs 50,760.

Similarly, MCX Gold Mini futures for October expiry are likely to seek support around Rs 50,525 - Rs 50,425 - Rs 50,385; the contract may find resistance around Rs 50,675 - Rs 50,730 - Rs 50,815.

Silver

Bias: Negative

Last Close: Rs 55,015

Resistance: Rs 56,550; Rs 58,580

Support: Rs 54,600; Rs 52,450

After falling more than 13 per cent in the preceding three weeks, Silver futures bounced back last week and gained nearly 5 per cent. The pullback also meant that Silver futures were once again seen testing the key support around the 200-DMA, placed at Rs 54,600-odd level.

Having said that, the bias as per the price-to-moving averages remains negative as the commodity languishes way below the other key moving averages - 20-, 50- and 100-DMA now placed at Rs 58,580, Rs 61,990 and Rs 64,100, respectively.

In the very near term, while the commodity is seen attempting to hold the support at the lower-end of the Bollinger Band on the daily chart at Rs 52,450-odd level, on the upside, the commodity needs to sustain above the 200-DMA for further strength.

Select key momentum oscillators, mainly the 14-day RSI and MACD, are slightly in favour of the bulls; hence we may see some upside during the week.

According to the weekly Fibonacci chart, this week the MCX Silver December futures are likely to trade in a broad range of Rs 53,480 to Rs 56,550; with support likely around Rs 54,465 - Rs 54,065 - Rs 53,770. On the upside, Silver futures may face resistance around Rs 55,560 - Rs 55,965 - Rs 56,260.

On Monday, Silver futures may seek support around Rs 54,720 - Rs 54,630 - Rs 54,535, while on the upside the commodity could face resistance around Rs 55,310 - Rs 55,405 - Rs 55,495.

Similarly, MCX Silver Mini November futures may seek support around Rs 55,405 - Rs 55,305 - Rs 55,155; while the Mini contract could face resistance around Rs 55,685 - Rs 55,785 - Rs 55,935 on Monday.

Further, the MCX Silver Micro November futures are likely to seek support around Rs 55,515 - Rs 55,410 - Rs 55,260 and might face resistance around Rs 55,795 - Rs 55,900 - Rs 56,050 today.