MCX Silver falls over 7% to ₹2.5 lakh per kg, MCX Gold trades around ₹1.52 lakh; check today’s trade setup

Market recap (as of 3:30 pm)

• Gold 2 April Futures: ₹1,52,600/ 10 gram (▼ 0.2%)
• Silver 5 March Futures: ₹2,50,200/ 1 kg (▼ 6.9%)
• Crude Oil 19 Feb Futures: ₹5,814/ 1 BBL (▼ 1.3%)

Technical view

MCX Gold futures recovered initial losses and is facing resistance around its 21-day exponential moving average (EMA). The prices are consolidating in the range of previous two trading sessions after aggressive profit-booking from the ₹1.80 lakh zone. However, Gold continues to trade above the immediate support zone of ₹1.38 to 1.40 lakh. Unless it breaks below this level, the long-term trend may remain positive. However, in the short-term it may consolidate between ₹1.38 and ₹1.72 lakh. Fresh buying momentum will only emerge above ₹1.72 lakh.

MCX Silver futures slipped over 6% during the day, extending the weakness and profit-booking after a sharp sell-off of 30 Jan. The prices are currently trading below the crucial support zone of 50-day EMA, which indicates loss of momentum in the near-term. In the short-term, if the price closes below the ₹2.54 lakh support zone the weakness may extend below 2 February low. Although the broader trend remains positive on a higher timeframe, the inability to remain above the 50-day EMA suggests ongoing consolidation.

MCX Crude Oil futures started the session on a negative note and is forming an inside candle on the daily chart. Despite the recent pullback, the prices remain above the short-term moving averages like 21-day, indicating support based buying on the daily chart. The ongoing price action reflects a consolidation ahead of the next move. A sustained move above ₹5,900 on the closing basis could reopen upside potential, whereas a fall below ₹5,440 could shift the bias towards consolidation.

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