MCX Gold and Silver trade in range as US-EU signs trade deal; check key technical levels and insights

Market recap (as of 4:00 pm)

• Gold 5 August Futures: ₹98,070/ 10 gram (▲ 0.2%)
• Silver 5 September Futures: ₹1,13,045/ 1 kg (▼ 0.01%)
• Crude Oil 19 August Futures: ₹5,720/ 1 BBL (▲ 1.2%)

Technical view

MCX Gold prices started the Monday’s session on a flat note and is trading within the range of 25 July. However, gold surrendered its crucial support zone of 21-day exponential moving average (EMA) on Friday and dropped nearly 3%. It has slipped towards the crucial trendline support zone connecting swing highs of May, June and July along with 50-day EMA.

For the upcoming sessions, traders can monitor the price action of gold around 50 EMA. A close below 50 EMA and trendline will signal continuation of the bearish momentum. On the flip side, a rebound from this zone, supported by a bullish candlestick pattern will signal reversal.

Silver started Monday's session on a muted note, consolidating within the prior session's range. In our last blog, we highlighted key levels at ₹1,16,600 and ₹1,14,300 on the daily chart, noting that a breakout on either side would signal the next directional move. Since then, silver has broken below the critical ₹1,14,300 support level, forming a bearish candle on the daily chart.

Looking ahead, Friday’s low at ₹1,12,457 is the key level to watch. A break below this point could confirm further downside. Conversely, any trend reversal would require silver to close back above the ₹1,14,300 resistance zone.

Crude oil bounced off the key support at the 21-day EMA and opened Monday’s session on a stronger footing. It failed to confirm the bearish engulfing pattern from July 25, holding above both the 21-day and 50-day EMAs on a closing basis.

For further clues, traders should watch the ₹5,800–₹5,550 range. A close above or below this band will offer the next decisive move.

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