Gold needs to conquer Rs 53,600 hurdle; Silver likely to target Rs 71,350

Bias for Silver futures likely to remain bullish, with near support seen at Rs 63,600 followed by Rs 62,500 level.

The MCX Gold and Silver futures logged strong gains last week. While Silver futures have given a strong buy signal on multiple time-frames, Gold futures need to clear its immediate hurdle zone for a stronger rally to emerge.

Gold

Bias: Positive

Last Close: Rs 53,265
Support: Rs 52,450
Resistance: Rs 53,400; Rs 53,600

The MCX Gold December futures have rallied Rs 1,100 in the last four trading sessions, and are currently testing resistance at the higher-end of the Bollinger Bands on multiple time-frames.

As per the daily, weekly and monthly charts, the higher-end of the Bollinger Bands indicate a resistance zone of Rs 53,400 - Rs 53,600. Hence, it would be very crucial for Gold futures to break and sustain above Rs 53,600 for a stronger rally to materialize.

The key momentum oscillators on all time frames are favourable; hence one can expect a breakout in the near term. The monthly Fibonacci chart pegs upside targets for MCX Gold at Rs 53,700 - Rs 54,080 - Rs 54,450.

In case of a downturn, Gold futures could slip back towards the trend line support at Rs 52,450-odd level.

According to the weekly Fibonacci chart, this week Gold futures may gyrate in a trading band of Rs 52,450 to Rs 54,080, with support expected around Rs 52,975 - Rs 52,760 - Rs 52,600, and resistance likely around Rs 53,555 - Rs 53,770 - Rs 53,925.

On Monday, the MCX Gold December futures are likely to seek support around Rs 53,160 - Rs 53,130 - Rs 53,095, while on the upside the contract may face resistance around Rs 53,370 - Rs 53,400 - Rs 53,435.

Similarly, the MCX Gold Mini November futures could seek support around Rs 53,190 - Rs 53,140 - Rs 53,090, and on the upside the contract is likely to face resistance around Rs 53,500 - Rs 53,550 - Rs 53,600 today.

Silver

Bias: Positive

Last Close: Rs 64,768

Target: Rs 71,350

Support: Rs 63,600; Rs 62,500

Resistance: Rs 67,000

MCX Silver futures rallied over 5 per cent last week and have given a strong buy signal on the daily and monthly charts. 

The MCX Silver futures are likely to trade on a bullish note as long as the commodity sustains above Rs 64,600-level - i.e. the higher-end of the Bollinger Bands on the daily chart. 

As per the monthly chart, the bias is likely to remain positive as long as Silver holds above Rs 62,500-level. On the upside, Silver futures can rally to Rs 71,350 level.

The weekly chart too indicates a positive bias, with some resistance seen at Rs 65,100, whereas considerable support expected around the 100-WMA (Weekly Moving Average) at Rs 63,600.

According to the weekly Fibonacci chart, this week the MCX Silver December futures may move in a broad range of Rs 61,945 to Rs 67,600. The commodity could seek support around Rs 63,765 - Rs 63,025 - Rs 62,485, while may face resistance around Rs 65,770 - Rs 66,500 - Rs 67,050.

On Monday, Silver futures are likely to seek support around Rs 64,185 - Rs 64,000 - Rs 63,825, while on the upside the December contract could face resistance around Rs 65,350 - Rs 65,530 - Rs 65,700.

Similarly, MCX Silver Mini November futures could seek support around Rs 65,800 - Rs 65,600 - Rs 65,400; whereas the Mini contract may face resistance around 67,000 - Rs 67,200 - Rs 67,400 on Monday.

Further, the MCX Silver Micro November futures are likely to seek support around Rs 65,800 - Rs 65,600- Rs 65,430; whereas the contract could face resistance around Rs 67,000 - Rs 67,200 - Rs 67,375 today.