Gold ($2,649/ounce) gained 0.6 per cent last week whereas silver ($30.6/ounce) lost 1.3 per cent.

Similarly, in the domestic market, gold futures (₹77,136/10 gm) was up 0.7 per cent and silver futures (₹91,001/kg) lost 1.6 per cent.

MCX-Gold (₹77,136)

Gold futures (February) moved up steadily in the first three sessions of last week. But it gave away almost all the gains following a decline on Thursday and Friday.

But it trades above 20 and 50-day moving averages and above the key supports at ₹76,000 and ₹74,000. As it stands, the contract is likely to remain range-bound between ₹76,000 and ₹79,000.

Only a breach of either of the boundaries mentioned above can potentially confirm the direction of the next trend. Resistance above ₹79,000 is ₹80,200 whereas support below ₹76,000 is at ₹74,000.

Trade strategy: Refrain from trading as the trend is unclear.

MCX-Silver (₹91,001)

Silver futures (March) rallied in the first half of last week and broke out of a barrier at ₹94,000. It also formed a higher high, indicating that the bulls are gaining strength.

However, there was a quick change in the direction and silver futures fell in the second half of the week, in line with gold futures.

The resistance at ₹96,500 successfully blocked the bulls and triggered a sell-off. That said, the contract has a strong support at ₹89,500. So long as this level holds, bulls will have a chance for a comeback.

Resistance above ₹96,500 is at ₹1,02,500 whereas immediate support below ₹89,500 is at ₹85,000.

Trade strategy: Since there is some uncertainty with respect to the trend, we suggest staying out for now.