Gold Price Today: US House Speaker Nancy Pelosi’s visit to Taiwan may give a fresh impetus to Gold’s safe haven appeal as tensions between world’s two biggest economies US and China mount. The developments around this event will likely have a positive impact on the yellow metal, says commodity expert Anuj Gupta.
Gupta said that bullion is expected to remain on strong ground and recommends a buy on Gold and Silver futures.
In his intraday trading strategy for today over the next session, the Vice President (VP), Commodity and Currency Research at IIFL Securities suggested a Buy on MCX October gold futures at Rs 51300 with a stop loss at Rs 51000 and target price of Rs 51800. The October Gold Futures were trading at Rs 51456 per 10 gram at 4:30 pm on Wednesday and were up by Rs 74 or 0.14 per cent from the Tuesday closing price.
Meanwhile, the MCX September Silver futures were trading at 57383 and were down by Rs 203 or 0.35 per cent. He recommends a buy in September Silver futures at Rs 57000 with a stop loss of Rs 56400 and target price of Rs 58000.
Gold’s rally came to a screeching halt after hawkish statements from two US Federal Reserve officials, sending gold tumbling from its day high to the day’s low, Pritam Patnaik, Commodities Head, HNI & NRI Acquisitions at Axis Securities said.
“With the armed confrontation risk between China and Taiwan increasing, gold prices moved above USD 1800, albeit briefly. Later in the day, the risk of further aggressive interest rate hikes to counter runaway inflation re-emerged, when two separate Fed officials stated that a lot more needs to be done to reign in runaway inflation, indicating that additional rate hikes were very much on the cards. This sent the dollar index and bond yields into recovery mode, thereby lowering the gold prices,” he added.