News

Commodity strategies: Gold, silver

Ravindra Rao

MCX Gold futures has dipped below the 20-day EMA support of Rs 47,250, suggesting a possible correction. The Bollinger band analysis on the daily charts suggests a consolidation phase as price is hovering around the midline of the band. The support holds around Rs 46,750, followed by Rs 46,500 (-2 SD). On the flipside, Rs 47,600 (200- DEMA) acts as a crucial resistance. RSI is not indicating any clear direction as it is hovering around the neutral zone of 50 (46), suggesting a sideways trend. So for the day, the price is expected to move in the range of Rs 46,750-47,600 with a sideways bias. Only a close above Rs 47,600 would bring fresh buying interest in gold futures.

Trading Range: Rs 46,750-47,600

MCX Silver futures dipped towards the 8-DEMA support at Rs 64,200, which limited the downside. On the upside, a trade through 50-DEMA would push it towards the key resistance of Rs 66,000 (200-DEMA). On the downside, a move below Rs 64,200 would extend the fall in price towards the next key supports at Rs 63,200- 62,900 zones. On the momentum front, RSI is hovering near 50, suggesting a sideways trend. So in the near term, the price seems to consolidate in the band of Rs 64,200-65,500. Only a sustained move above Rs 65,500 would bring fresh buying interest in silver futures.

Trading Range: Rs 64,200-65,500

(Ravindra Rao is CMT , EPAT, VP-Head Commodity Research, Kotak Securities Ltd. Views are his own)

Articles You May Like

Sterling Rises Broadly, Shrugging Weak PMI Data
Dollar Extending Recovery, Euro and Sterling Soften
Gold gains Rs 30; silver climbs Rs 856
Singapore’s PropertyGuru slips back into the red with $5.3 million net loss for the third quarter
Crypto is breaking the Google-Amazon-Apple monopoly on user data

Leave a Reply

Your email address will not be published. Required fields are marked *