Gold prices in February contract rose on Friday after two days of decline as a weaker dollar and a pickup in physical demand from China on bargain hunting supported prices. However, volumes were very thin due to holiday in US markets. However, gold is likely to post its biggest monthly drop since June as optimism over global economic recovery and fears of an end to cheap availability of money has pushed prices down by more than 5% in November. We expect Gold prices to continue the down trend on optimism over improving global economic conditions.

Over all, MCX Gold February future is in consolidation and sustaining around lower levels. For the coming week 28500/28000 will act as a major support whereas 29500/30000 will act as a major resistance level in MCX Gold February future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold February future sustain below the levels of 28950 then it could test the levels 28750 /28500.

Technically, MCX Silver March futures is sideways and sustaining around lower levels. For the coming week 46130/47300 will act as major resistance levels where as 43000/41600 will act as major support in MCX Silver March futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver March futures sustains below 45200 then it could test the levels of 44200/ 43000.