Support for Gold moves higher to Rs 50,800; MCX Silver may test Rs 63,900

The MCX Silver futures were seen testing the 200-DMA after a gap of almost six months and could move to Rs 63,900-level in the near term.

The current up move in Gold prices seems more of a pull-back rally within a corrective move. The next few trading sessions is likely to give a clearer picture of future trend, for now the near-term support has moved higher to Rs 50,800. On the other hand, Silver futures were seen testing the 200-DMA after almost six months, above which the commodity could spurt to Rs 63,900-level in the near term.

Gold

Bias: Negative

Last Close: Rs 51,960

Upside Target: Rs 52,700; Rs 53,150

Support: Rs 50,800

The MCX Gold futures have managed to break and sustain above the key moving averages for the last four trading sessions, thus raising hopes of a likely trend reversal. 

Despite the recent sharp gain of more than 6 per cent in the last two weeks, the overall bias on the basis of price-to-moving averages remains negative on the daily chart and seems susceptible to a reversal at some point of time.

Meanwhile for the current up move to sustain, the MCX Gold futures will need to sustain above Rs 50,800-level on a consistent basis, which is where the 50-DMA (Daily Moving Average) and 100-DMA coincide.

The weekly chart indicates that Gold prices can test Rs 52,700-on the upside - the higher-end of the Bollinger Band, above which the next target shall be Rs 53,150.

The price-to-moving averages action on the weekly chart has remained positive despite the alternate bouts of price corrections since early February.

As per the weekly Fibonacci chart, this week MCX Gold October futures may trade in a broad range of Rs 50,730 to Rs 53,190. The contract is likely to seek support around Rs 51,520 - Rs 51,200 - Rs 50,965, and whereas may face resistance around Rs 52,400 - Rs 52,720 - Rs 52,955. 

On Monday, the MCX Gold 1 kg futures contract is likely to seek support around Rs 51,775 - Rs 51,720 - Rs 51,660, while on the upside the October contract may face resistance around Rs 52,065 - Rs 52,145 - Rs 52,260.

Similarly, the MCX Gold Mini October futures may seek support around Rs 51,545 - Rs 51,490 - Rs 51,435, and the contract could face resistance around Rs 51,815 - Rs 51,890 - Rs 51,995 today.

Silver

Bias: Tentatively Positive

Last Close: Rs 60,785

Upside Targets: Rs 63,100; Rs 63,900

Resistance: Rs 61,270; Rs 61,600

Support: Rs 57,750

The MCX Silver futures have surged more than 14 per cent from its recent low of Rs 54,355 touched on September 28. Following the sharp up move, Silver futures were now seen testing the key hurdle around the 200-DMA placed at Rs 61,270-odd level for the first time since late April.

The key momentum oscillators are clearly in favour of the bulls, and the 20-DMA too (Rs 57,750) has crossed the 50-DMA (Rs 56,650) and on verge of conquering the 100-DMA (Rs 57,900) too. The crossover should be a sentiment booster for the commodity.

As per the weekly chart, the MCX Silver December futures were seen testing resistance around the 50-WMA (Rs 61,600), above which the next two targets were placed at Rs 63,100 and Rs 63,900, the higher-end of the weekly Bollinger Band and the 100-WMA, respectively.

According to the weekly Fibonacci chart, this week the MCX Silver December futures may trade in a broad range of Rs 56,670 to Rs 64,900. The Silver contract is likely to seek support around Rs 59,320 - Rs 58,240 - Rs 57,455. On the upside, Silver futures may face resistance around Rs 62,250 - Rs 63,330 - Rs 64,115.

On Monday, Silver futures are likely to seek support around Rs 60,170 - Rs 59,980 - Rs 59,790, while on the upside the commodity could face resistance around Rs 61,140 - Rs 61,400 - Rs 61,780.

Similarly, MCX Silver Mini November futures could seek support around Rs 60,555 - Rs 60,380 - Rs 60,200; while the Mini contract may face resistance around Rs 61,455 - Rs 61,695 - Rs 62,045 on Monday.

Further, the MCX Silver Micro November futures could seek support around Rs 60,600 - Rs 60,435 - Rs 60,270 and might face resistance around Rs 61,460 - Rs 61,695 - Rs 62,030 today.