MCX Gold likely to consolidate; Silver futures trade with a negative bias

The MCX Silver July futures are currently trading below all its key moving averages; similarly, MCX Gold futures need to break above Rs 51,870 for further up move to emerge.

Gold

Bias: Consolidation likely to continue

Last close: Rs 51,344

Resistance: Rs 51,870

Support: Rs 50,000

The MCX Gold futures are likely to consolidate in the near term as prices retreat from lower end of the support range, and key momentum oscillators indicating lack of strength in the current trend.

According to the daily charts, MCX Gold June futures are likely to face resistance around Rs 51,870-odd level, where the key short-term (20-DMA and 50-DMA) moving averages converge. Further, the MACD (Moving Average Convergence and Divergence) is looking to recover from a negative bias, while the ADX indices lack of strength in the current