Upside for Gold capped around Rs 52,570; Silver to test hurdle at Rs 60,800

The MCX Gold futures are likely to face resistance around Rs 51,135, above which the up move may still be capped at Rs 52,570. Silver futures have failed to sustain above the 200-DMA since late April.

The MCX Gold futures have reached within striking distance of the anticipated trading band on the daily chart, and for now, the upside seems capped around Rs 52,570. On the other hand, Silver futures are attempting to conquer the 200-DMA once again, after they failed in doing so in October.

Gold

Bias: Rangebound

Last Close: Rs 50,866

Support: Rs 50,520; Rs 50,310

Resistance: Rs 51,210; Rs 51,420

The anticipated trading range, as indicated by the Bollinger Bands on the daily chart, for MCX Gold futures has now narrowed down to Rs 50,000 to Rs 51,135. However, the weekly Bollinger Bands still indicate a slightly broader trading range of Rs 49,100 to Rs 52,570.

With a strong surge on Friday, the MCX Gold December futures now seem within striking distance of the higher-end of the Bollinger Bands on the daily chart. For now, a reversal from the said higher-end, or Rs 52,570 seems likely. 

For a fresh trend to emerge, Gold futures need to breakout and sustain beyond on the existing indicative trading range on a consistent basis. Till such times, Gold futures are likely to swing in the above mentioned trading range.

Further, the key moving averages - the 20-, 50-, 100- and 200-DMAs (Daily Moving Averages) are too seen converging into a narrow band of Rs 50,350 to Rs 50,820.

Among the key momentum oscillators, the Slow Stochastic and the MACD (Moving Average Convergence Divergence) are marginally in favour of the bulls. However, the Average Directional Index (ADX) is seen weakening, thus indicating lack of strength in the current trend.

According to the weekly Fibonacci chart, MCX Gold December futures are likely to trade in a range of Rs 50,310 to Rs 51,420. Gold prices may seek support around Rs 50,670 - Rs 50,520 - Rs 50,415, and may face resistance around Rs 51,065 - Rs 51,210 - Rs 51,315. 

On Monday, the MCX Gold 1 kg futures contract is likely to seek support around Rs 50,735 - Rs 50,640 - Rs 50,500, while on the upside the December contract could face resistance around Rs 50,995 - Rs 51,090 - Rs 51,230.

Similarly, the MCX Gold Mini November futures could seek support around Rs 50,670 - Rs 50,540 - Rs 50,350, and Gold prices may face resistance around Rs 51,020 - Rs 51,150 - Rs 51,340 today.

Silver

Bias: Rangebound

Last Close: Rs 60,538

Support: Rs 60,090; Rs 59,120 

Resistance: Rs 60,800; Rs 61,040

Following Friday's near 4-per cent surge, the MCX Silver futures are once again in striking distance of the 200-DMA (Daily Moving Average), a level the commodity has been unable to conquer since late April this year. Recently, in October, Silver futures fought hard to sustain above the 200-DMA, but failed in doing so.

The 200-DMA now placed at Rs 60,800, shall be the key level to watch out for going ahead this week. Incidentally, Silver futures have crossed the higher-end of the Bollinger Bands on the daily chart at Rs 60,090, and the same may act as an immediate support in the near term.

Failure to sustain above the Rs 60,800-level can trigger a corrective move back towards Rs 57,700-odd level - which is where the 20-DMA stands. 

As per the weekly chart, Silver futures are seen testing resistance around the 50-WMA (Weekly Moving Average) placed at Rs 60,970, above which the next couple of hurdles are placed at Rs 61,040 and Rs 63,750 - its higher-end of the weekly Bollinger Band and the 100-WMA, respectively. 

The key momentum oscillators, in the MACD and RSI in particular, are favourbale on the weekly chart, thus raising hopes of an extension to the current pullback.

According to the weekly Fibonacci chart, this week the MCX Silver December futures may move in a broad range of Rs 58,255 to Rs 62,820. The white-metal commodity may seek support around Rs 59,725 - Rs 59,130 - Rs 58,255 during the week; whereas may face resistance around Rs 61,350 - Rs 61,950 0 Rs 62,385.

On Monday, Silver futures are likely to seek support around Rs 60,030 - Rs 59,660 - Rs 59,120, while on the upside the December futures could face resistance around Rs 61,045 - Rs 61,415 - Rs 61,955.

Similarly, MCX Silver Mini November futures are likely to seek support around Rs 60,365 - Rs 60,025 - Rs 59,530; whereas the Mini contract may face resistance around Rs 61,285 - Rs 61,625 - Rs 62,115 on Tuesday.

Further, the MCX Silver Micro November futures could seek support around Rs 60,340 - Rs 59,755 - Rs 59,505 and the contract expected to counter resistance around Rs 61,265 - Rs 61,605 - Rs 62,100 today.