Gold could test Rs 66,500, Silver Rs 85,000 in FY24, charts suggest

MCX Gold is likely to trade with a bullish bias this April as long as prices sustain above Rs 59,800; Pivot point for Silver is Rs 73,800.

The MCX Gold and Silver futures soared to record highs in trades on Tuesday tracking a sharp rally in international markets, after the US dollar dropped to a two-month low amid downbeat economic data points. A sustained fall in Treasury yields to near 3.34 per cent also weighed on the sentiment.

Just couple of trading sessions ago, Gold ended the financial year 2022-23 with a robust 16 per cent rally. For the records, Gold prices ended with gains for the eighth straight financial year. READ MORE

So going ahead and for FY24, here's what the charts indicate for MCX Gold and Silver futures.

Gold

Bias: Positive

Last Close: Rs 60,954

Target: Rs 61,800; Rs 62,500

Support: Rs 59,800

The MCX Gold futures picked up upward momentum after testing support around the 20-WMA (Weekly Moving Average) in early March 2023. Currently, Gold June futures are seen trading above the higher-end of the Bollinger Bands on the weekly scale at Rs 60,750-odd levels.

According to Praveen Singh - AVP, Fundamental currencies and Commodities analyst at Sharekhan by BNP Paribas, Gold is expected to find good support around $2,000 (MCX June Gold Rs 60,400), while resistance is at $2,030 (MCX Gold June Rs 61,300), followed by $2,050 (MCX Gold June Rs 61,800).

"Momentum buyers eye all-time high of $2,074.88 reached in August 2020. Below $2,000, the support emerges around $1,975 (Rs 59,700), Praveen added.

Echoing a similar view, Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One expects Gold futures to trade higher towards Rs 61,460 levels, a break of which could prompt the price to move higher to Rs 61,890.

Meanwhile, the broader trend this April is likely to remain bullish as long as Gold futures manage to sustain above Rs 59,800, indicates the monthly chart.

Key momentum oscillators like the RSI and MACD, although overbought, are still in favour of the bulls. Hence, Gold prices may be able to sustain at higher levels in the near term.

As per the monthly Fibonacci chart, Gold prices may head towards Rs 61,840 - Rs 62,500 on the upside, the R1 and R2 pivot points.

For FY24, the Fibonacci chart indicates a broad trading range of Rs 52,300 to Rs 66,500. In case of a downturn, Gold futures are likely to seek support around Rs 56,870 - Rs 55,000 - Rs 53,650. On the upside resistance can be expected around Rs 61,930 - Rs 63,800 - Rs 65,150.

On Wednesday, the MCX Gold June futures could seek support around Rs 60,670 - Rs 60,460 - Rs 60,160, while on the upside the contract may counter resistance around Rs 61,240 - Rs 61,450 - Rs 61,750.

Similarly, the MCX Gold Mini May futures are expected to seek support around Rs 60,345 - Rs 60,135 - Rs 59,835, and on the upside the contract may face resistance around Rs 60,900 - Rs 61,115 - Rs 61,415.

Silver

Bias: Positive

Last Close: Rs 74,618

Target: Rs 76,500; Rs 77,850; Rs 79,175

Support: Rs 73,800

The MCX Silver futures have witnessed a sharper rally in the last few trading sessions when compared with Gold. This was largely due the underperformance last financial year. In FY23, Silver futures gained 7 per cent as against a 16 per cent rally in Gold.

Given the current momentum Silver futures seem on course to extend the outperformance in the near term. As per the monthly Fibonacci chart, Silver futures could rally to Rs 76,500 - Rs 77,850 - Rs 79,175 this April.

The monthly chart too indicates that the bias for Silver is likely to remain bullish as long as Silver prices sustain above Rs 73,800-level - i.e. the higher-end of the Bollinger Bands on the monthly chart.

For FY24, the Fibonacci chart indicates a likely trading range of Rs 59,100 - Rs 85,330. During the course of the fiscal year, the white metal futures could seek support around Rs 67,550 - Rs 64,100 - Rs 61,600; whereas, on the upside the commodity could face resistance around Rs 76,900 - Rs 80,300 - Rs 82,825.

On Wednesday, Silver May futures are likely to seek support around Rs 74,025 - Rs 73,590 - Rs 72,960, while on the upside the contract may face resistance around Rs 75,200 - Rs 75,640 - Rs 76,280.

Similarly, MCX Silver Mini April futures could seek support around Rs 73,880 - Rs 73,455 - Rs 72,840; whereas on the upside the Mini contract may counter resistance around Rs 75,025 - Rs 75,450 - Rs 76,065 today.

Further, the MCX Silver Micro April futures are likely to seek support around Rs 73,875 - Rs 73,450 - Rs 72,850; whereas the contract could counter resistance around Rs 75,000 - Rs 75,430 - Rs 76,040 on Wednesday.