Gold ($2,620/ounce) was flat last week whereas silver ($29.4/ounce) lost 0.5 per cent.

In the domestic market, gold futures (₹76,544/10 gm) was up 0.2 per cent and silver futures (₹88,887/kg) gained 0.6 per cent.

MCX-Gold (₹76,544)

Gold futures (February) moved up a little but was unable to cross over the 20-day moving average (DMA), which is currently at ₹76,960. Just above this lies the 50-DMA at ₹77,320. Therefore, the price region of ₹76,960-77,320 is a potential resistance band.

That said, the price action at broader level shows that gold futures is trading between two key levels of ₹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 (₹88,887)

Silver futures (March) attempted for a recovery last week after declining in the preceding one. However, it was blocked by the resistance at ₹90,000. On the back of this, the contract saw its price drop on Friday.

The current chart set up denotes that there is a possibility for silver futures to see a further drop in price before a recovery. But that downswing is likely to be limited to either ₹86,800 or ₹85,000. A breach of ₹83,000 can intensify the sell-off.

If the contract starts rallying and surpasses ₹90,000, it can extend the upside to ₹94,000 or to ₹96,500. A breakout of ₹96,500 can turn the trend bullish. Resistance above ₹96,500 is at ₹1,02,500.

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