Gold Price Today: MCX gold and silver prices corrected sharply over the previous week with MCX August Gold futures declining by 1.32 per cent on a weekly basis to close at Rs 50103 on Friday. On Friday alone, gold futures were down by Rs 125 or 0.25 per cent from the previous closing price on Thursday.
In international market, the yellow metal futures corrected by 2.02 per cent and closed at USD 1706 levels while touching a low of USD 1697, commodity expert Anuj Gupta said.
Meanwhile, September Silver futures also ended with a negative bias on Friday at Rs 55608 per kg, and were down nearly 1 per cent or by Rs 573. International silver price also corrected by 3.12 per cent and closed at USD 18.69 levels, Gupta said.
On MCX, Silver futures corrected sharply by 2.70 per cent to settle at 55587 levels, he further said.
The overall outlook remains negative for bullion over the week, he opines and recommends a Sell strategy on Gold and Silver.
Gupta, is Vice President (VP), Commodity and Currency Research at IIFL Securities.
He said that the previous week’s fall in bullion prices were line with the expectations.
Inflation continues to be a pain point and there is an expectation of the US Federal Reserve hiking the interest rates in the next round of its policy meeting, Gupta said. This is putting significant pressure on bullion, he reasoned.
Strength in Dollar Index is taking sheen away from the yellow metal despite fear of recession raising its head, the VP said. Gold is considered as a haven during uncertainties.
The low mood has got reflected across instruments including Gold ETFs (Exchange Traded Funds) which have witnessed a month-on-month decline in net inflows.
Even the demand in physical gold and silver has taken a beating, Gupta said.
Technically, support in August Gold futures is seen at Rs 49600- Rs 49200. Meanwhile, resistance is seen at Rs 50700-51300 levels. As for international prices support is at USD 1670-1650 while resistance is seen at USD 1735-1770, Gupta said.
Support on MCX silver futures is estimated at Rs 53500- 51500 while resistance is at Rs 57000-59000.
He recommended sell on rise in August Gold Futures at Rs 50700 levels with the stop loss of Rs 51300 and the target of 49600.
Selling is recommended on September silver futures as well at Rs 57000 with the stop loss of Rs 59000 and target of Rs 54000 to 53500 levels.
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“We are expecting that Gold may test USD 1680 to USD 1670 and silver may test USD 17.80 to USD 18 levels very soon,” Gupta warned.
Fundamentally and technically, bullion is showing a negative trend.
This analyst took a contra call for Monday trading suggesting a buy in Gold and Silver.
Buy August Gold at Rs 50000 with a stop loss of Rs 49750 and target of Rs 50400, Gupta said.
Buy September silver at Rs 55000 with a stop loss of Rs 54400 and target of Rs 56500.
(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.)