MCX Gold, Silver: Upside seems capped; likely trading range for the week

The upside for MCX Gold June futures seem capped around Rs 51,500-odd level; while MCX Silver futures are likely to face strong resistance in the Rs 64,200 - 64,800 range.

Gold

Bias: Slightly Negative

Last close: Rs 50,829

Resistance: Rs 51,500

Downside Potential: Rs 48,950

The MCX Gold June futures have pulled back after testing support around the lower-end of the Bollinger Band on the daily charts. The commodity is currently testing resistance around its 20-DMA placed at Rs 50,800-odd level, above the Gold prices may look to extend gains. However, the upside seems capped around its 50-DMA placed at Rs 51,500-odd level.

The overall bias seems slightly negative, hence one can expect strong resistance for Gold futures around the 50-DMA. The broader trend indicates that Gold prices are likely to drop towards the