Gold ($3,327/ounce) and silver ($32.5/ounce) gained 2.8 per cent and 0.6 per cent respectively last week.
Similarly, in the domestic market, gold futures (₹95,254/10 gm) and silver futures (₹95,037/kg) gained 1.6 per cent and 0.8 per cent respectively last week.
MCX-Gold (₹95,254)
Gold futures (June), backed by the rally on Wednesday, posted a weekly gain. The uptrend appears intact and the chance for further rally is high.
Although ₹96,000 is a potential hurdle, given the current momentum, the contract is likely to surpass this, and hit ₹98,000 and then ₹1,00,000 in the near term.
But in case there is a decline from the current level of ₹95,254, it can find support at ₹93,800 and ₹92,500. So long as the contract stays above ₹91,300, there is no threat to the bull trend.
Trade strategy: Buy gold futures at ₹95,250 and accumulate at ₹93,800. Place stop-loss at ₹92,300. When the contract touches ₹97,000, alter the stop-loss to ₹95,500. On a rally to ₹98,000, raise the stop-loss to ₹96,750. Book profits at ₹99,000.
MCX-Silver (₹95,037)
Silver futures (May) moved up to mark an intra-week high of ₹96,965 on Wednesday. But then, it gave up most of the gains during the following session. Consequently, it posted a marginal gain of 0.8 per cent for the week.
Yet, the price action shows that ₹94,300 has been acting as a good support. At this level, the 200-day moving average coincides. So, we are likely to see a rally on the back of this base.
Nearest resistance is at ₹98,000 followed by ₹1,01,500. Support below ₹94,300 is at ₹92,000.
Trade strategy: Go long now at ₹95,000 as there is a support at ₹94,300. Stop-loss can be at ₹93,300. On a rally to ₹98,000, modify the stop-loss to ₹96,000. Exit at ₹1,00,000.
Published on April 19, 2025
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