Upside seems capped for MCX Gold; Silver may consolidate in this range

The upside for MCX Gold June futures seem capped around Rs 51,400-level, while support is seen around Rs 50,670; Silver futures may consolidate in a broad range of Rs 58,480 to Rs 63,885.

Gold

Bias: Limited Upside

Last close: Rs 50,913

Resistance: Rs 51,400

Support: Rs 50,670

The bias for MCX Gold June futures continue to remain that of a limited upside, as the commodity continues to trade below the 50-DMA. The MCX Gold prices are likely to face considerable resistance around Rs 51,400-level - its 50-DMA which also coincides with the higher-end of the Bollinger Band on the daily charts. 

Further, key momentum oscillators like the 14-day RSI and MACD although positive seem to be lacking strength. One needs to watch out for the ADX closely for improved strength in either direction.

On the downside, the 20-DMA placed at Rs 50,670-level seems to be providing support for gold futures for now, below which the next near support is at the 100-DMA placed at Rs 50,530. 

According to weekly Fibonacci chart, MCX Gold June futures this week may move in a broad range of Rs 50,500 to Rs 51,325. Gold futures could seek support around Rs 50,765 - 50,660 - 50,580; whereas on the upside, Gold prices may face resistance around Rs 51,060 - 51,170 - 51,245.

Meanwhile, as per the daily Fibonacci chart, the MCX Gold June futures on Monday are likely to seek support around Rs 50,830 - 50,805 - Rs 50,780; on the upside the commodity may face resistance around Rs 50,995 - 51,020 - 51,045.

Similarly, Gold Mini June futures are likely to move in a broad range of Rs 50,575 to Rs 51,350 this week. Gold Mini futures are likely to seek support around Rs 50,825 - 50,725 -50,650, whereas prices on the upside may face resistance around Rs 51,100 - 51,200 - 51,275.

On Monday, MCX Gold Mini June futures might look to seek support around Rs 50,870 - 50,840 - 50,810; whereas the commodity could face resistance around Rs 51,055 - 51,085 - 51,115.

Silver

Bias: Consolidation

Last Close: Rs 62,116

Resistance: Rs 63,885

Support: 51,375

Downside Potential: Rs 58,450

Last week, the MCX Silver July futures managed to crawl back its way above the short-term 20-DMA (Rs 61,375) for the first time since post April 20, 2022. Despite, the pull-back the price-to-moving averages action continues to remain in favour of the bears for now.

Silver prices on the upside are likely to face multiple hurdles in the form of the higher-end of the Bollinger Band on the daily chart at Rs 63,385, followed by the 

200-DMA at Rs 63,700; and the 100-DMA, 50-DMA at Rs 64,530 and Rs 64,780, respectively.

Select key momentum oscillators on the daily charts like the 14-day RSI and MACD seem to be positive, but again the ADX indicates lack of strength.

Further, the MCX Silver weekly chart also indicates the likelihood of strong resistance for the commodity around Rs 64,200 - 64,550 odd levels. On the flip side, the commodity can retest the lower-end of the weekly Bollinger Band indicating a downside to Rs 58,450-odd level.

On the positive from, among the key momentum oscillators the MACD has turned marginally positive, but still hovers below the zero line. The 14-day RSI is in neutral mode, while ADX indicates lack of strength in the current trend.

The weekly chart also indicates convergence of multiple resistances around Rs 64,200 to Rs 64,800; thus hinting that the upside for Silver futures seem limited in the current scenario.

According to the weekly Fibonacci chart, this week the MCX Silver July futures are likely to trade in a broad range of Rs 60,985 to Rs 63,250; with support likely around Rs 61,715 - 61,420 - 61,200. On the upside, Silver futures may face resistance around Rs 62,520 - 62,815 - 63,030.

The daily Fibonacci charts, indicates key support levels for MCX Silver futures on Monday at Rs 61,770 - 61,660 - 61,555; whereas resistance can be expected around Rs 62,460 - 62,570 - 62,675.

Similarly, MCX Silver Mini June futures on Monday may seek support around Rs 62,075 - 61,970 - 61,865; while silver prices are likely to face resistance around Rs 62,750 - 62,855 - 62,960.

Further, the MCX Silver Micro June futures could seek support around Rs 62,070 - 61,960 -61,855 and might face resistance around Rs 62,775 - 62,885 - 62,995 today.