Gold produced a marginal gain last week as the dollar retreated from the high. However, silver continues to suffer and saw a marginal drop. On the Multi Commodity Exchange (MCX), gold futures advanced 1.1 percent to end the week at ₹50,644 (per 10 gram). But silver futures posted a loss of 0.8 percent as it wrapped up the week at ₹55,131 (per kg).
Since early May, the gold futures on the MCX (August expiry) has been following a sideways trend it has been oscillating between ₹50,000 and ₹52,000. So, until either of these levels is breached, the next leg of the trend will remain uncertain. Also, there is a rising trendline that could offer support at around ₹49,500, making the price area of ₹49,500-50,000 a good support band.
The silver futures (September expiry), which has been on a downtrend since past three months, is currently testing a support at ₹55,000. If the contract rebounds from this support and rallies, it can find resistance at ₹58,500 and at ₹60,000. Essentially, the price area of ₹58,500-60,000 is a considerable resistance band and a rally beyond these levels is less likely. Resistance above ₹60,000 can be spotted at ₹63,000.
Brent futures, the crude oil futures (August expiry) on the MCX too is charting a sideways trend for nearly three weeks. It has been moving between ₹ 7,350 and ₹ 8,100. Therefore, the next leg of the shortterm trend can be confirmed based on the break of this range. To get a clue on the medium and longterm trend, the contract should move out of the broader range of ₹7,150=9,000. A breakout of ₹8,100 can move the crude futures to ₹8,500 the immediate resistance initially. A breach of this level can take the contract to ₹9,000, from where there could be a price correction.