Gold Price Today 22 September: Dollar Index (DXY) strengthened on Thursday after a 75 bps hike undertaken by the US Federal Reserve in the September Federal Open Market Committee Meeting (FOMC). That has taken some sheen away from gold, trading in the international market.
However, the yellow metal has been a clear winner in the domestic markets, helped by a weaker rupee, which hit a new record low on Thursday against the US Dollar.
At 4:40 pm, the October Gold Futures on MCX were trading at Rs 49854 per 10 gram and were up by Rs 411 or 0.83 per cent from the Wednesday closing price.
Commodity and currency expert Anuj Gupta expects the Dollar Index (DXY) to breach 112, thereby bringing further weakness in the Indian Rupee. He said that Gold is expected to strengthen in the immediate term.
His advice to investors and traders in Gold Futures is to book profits today. Sell gold at Rs 49900 with a stop loss of Rs 50200 and price target of Rs 49500, Gupta said. He has clarified that selling or profit booking is advised to those traders who have bought Gold futures over the past 1-2 days. As DXY moves inversely against the Gold price movement, the international prices of Gold could come down, going forward Gupta said adding that it will ultimately reflect in the Indian prices as well.
There will be buying opportunity at dips, he further said.
Gupta is Vice President (VP), Commodity and Currency Research at IIFL Securities.
Meanwhile, the December Silver Futures were trading at Rs 57890 per kg around this time and were up by Rs 592 or 1.03 per cent.
His strategy for MCX Silver futures is one of buy for today. Gupta suggested buy in December Silver futures at Rs 57300 with a stop loss of Rs 56600 and price target of Rs 58500.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)