Gold ($2,771/ounce) and silver ($30.6/ounce) went up 2.6 per cent and 1 per cent respectively last week.

In the domestic market, gold futures (₹80,026/10 gm) was up 1.3 per cent, whereas silver futures (₹91,599/kg) ended flat. As rupee gained versus dollar last week, the return in rupee terms was lower for the precious metals.

MCX-Gold (₹80,026)

Gold futures (February) gained for the fifth week in a row as it appreciated last week. It marked a high of ₹80,312 before softening to the current level of ₹80,026.

Although the trend remains up, there is a possibility for the price to moderate to ₹78,800 before the next rally. Eventually, it will reach ₹81,000 in the near term. Over the next few weeks, it could climb higher, probably to ₹85,000.

In case it slips below ₹78,800, it can drop to ₹78,000. A decline below the latter is unlikely. But if that occurs, the short-term trend may turn bearish.

Trade strategy: Stay out for now. Go long if gold futures soften to ₹78,800. Target and stop-loss can be ₹81,000 and ₹77,800 respectively.

MCX-Silver (₹91,599)

Silver futures (March) was largely charting a sideways trend over the past week. Notably, it has been oscillating between ₹90,000 and ₹93,600 since early January.

That said, the price lies above both 20- and 50-day moving averages and thus, the contract possesses a bullish inclination.

Sooner or later, silver futures can rise past ₹93,600 and touch ₹96,500, a resistance. Subsequent barrier is at ₹1,02,500.

But if the contract breaches the support at ₹90,000, it could extend the downswing to ₹86,800 or even to ₹85,000, which are the notable support levels.

Trade strategy: Retain silver futures long initiated at ₹91,000. Target and stop-loss can be ₹96,500 and ₹88,500 respectively.

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