Trend to remain positive for Gold above Rs 54,040; Silver 66,940

The MCX Gold and Silver futures were seen consolidating after the recent rally. The short-term bias for these precious metals is likely to remain positive as long as they sustain above the 20-DMA. On the upside, Gold futures are likely to counter some resistance around Rs 55,150, Silver around Rs 70,250.

Gold

Bias: Positive

Last Close: Rs 54,574

Target: Rs 55,550

Support: Rs 54,040

Resistance: Rs 55,150

The MCX Gold February futures were seen consolidating in the week gone by as the commodity came within striking distance of the anticipated price target. Furthermore, Gold prices seem to facing some resistance around the higher-end of the Bollinger Bands on the weekly chart, now placed at Rs 55,150 level.

Having said that, the short-term bias is likely to remain positive as long as Gold futures trade above the 20-DMA (Daily Moving Average), placed at Rs 54,040-odd level. On the upside, the February Gold contract needs to break and sustain above Rs 55,150, for a rally towards Rs 55,550.

Whereas, on the flip side, in case Gold futures fail to hold on the 20-DMA support, a corrective move towards the 50-DMA placed at Rs 52,500 seems possible.

According to the weekly Fibonacci chart, this week MCX Gold February futures may trade in a range of Rs 53,930 to Rs 55,215; with the yellow metal expected to seek support around Rs 54,345 - Rs 54,180 - Rs 54,055, and likely to face resistance around Rs 54,800 - Rs 54,970 - Rs 55,100.

On Monday, the MCX Gold February future contract is likely to seek support around Rs 54,455 - Rs 54,420 - Rs 54,385, while on the upside the contract may counter resistance around Rs 54,690 - Rs 54,725 - Rs 54,760.

Similarly, the MCX Gold Mini January futures may seek support around Rs 54,010 - Rs 54,980 - Rs 54,950, and on the upside the contract is likely to face resistance around Rs 54,200 - Rs 54,230 - Rs 54,260 today.

Silver

Bias: Positive

Last Close: Rs 69,033

Target: Rs 71,350; Rs 71,650

Support: Rs 66,940

Resistance: Rs 70,250

Similarly to that of Gold, the MCX Silver March futures were also seen consolidating last week. The short-term bias for Silver is likely to remain positive as long as the commodity holds above its 20-DMA, placed at Rs 66,940.

However, select momentum oscillators like the 14-day RSI (Relative Strength Index) and MACD (Moving Average Convergence-Divergence), in particular, are some showing signs of tiredness. Hence, a corrective move in Silver seems possible in the near term.

In case, Silver futures break the support at Rs 66,940; the commodity could slide towards its 50-DMA, indicating a downside target of Rs 62,700-odd level.

The bias on the weekly chart too remains positive, with some resistance seen around Rs 70,250-level, near the higher-end of the Bollinger Bands. 

According to the weekly Fibonacci chart, this week the MCX Silver March futures may swing in a broad range of Rs 67,240 to Rs 70,830. The white metal could seek support around Rs 68,400 - Rs 67,925 - Rs 67,580, while resistance can be expected around Rs 66,670 - Rs 70,140 - Rs 70,485.

On Monday, Silver March futures are likely to seek support around Rs 68,800 - Rs 68,725 - Rs 68,650, while on the upside the Silver prices may be capped around Rs 69,270 - Rs 69,340 - Rs 69,415.

Similarly, MCX Silver Mini February futures could seek support around Rs 68,755 - Rs 68,675 - Rs 68,600; whereas on the upside the Mini contract may counter resistance around Rs 69,275 - Rs 69,355 - Rs 69,435 on Monday.

Further, the MCX Silver Micro February futures are likely to seek support around Rs 68,770 - Rs 68,700 - Rs 68,625; whereas the contract could face resistance around Rs 69,235 - Rs 69,310 - Rs 69,380 today.