The outlook for MCX Gold futures is sideways to negative, at least two analysts have told Zeebiz Web Team. Commodities expert Anuj Gupta has recommended a Sell strategy for this week. On Monday, MCX August gold futures ended at R 50341 per 10 gram and were up nearly 0.5 per cent or Rs 234 from the Friday closing price.
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On Tuesday, Gold was trading at Rs 50269, down by Rs 92 or 0.2 per cent from the Monday closing price. The technical analyst recommends Sell on August Gold futures at Rs 50550 with a stop loss of Rs 50750 and target of Rs 50100.
Selling is suggested in September Silver futures at Rs 56500 with a stop loss at Rs 57250 and price target at Rs 55500, Gupta added.
Gupta is Vice President (VP), Commodity and Currency Research at IIFL Securities.
Expect market to continue to be sideways to negative, Pritam Patnaik of Axis Securities says. He is Head – Commodities, HNI & NRI Acquisitions.
“A trifecta impact of impending US interest rate hike of 0.75 per cent to 1 per cent, strong USD, and higher bond yields have sapped any potential positivity from gold bulls. Yesterday’s brief-up move in gold was aggressively sold into, showing the lack of confidence the asset class enjoys amongst traders and investors,” he said.
“It’s a given fact that gold is technically in oversold territory, but with the upcoming US Fed rate decision in the coming days, no traders are willing to stick their necks out. Money managers and retail investors seem to be reducing their longs, with both the CFTC data and SPDR gold fund indicating unwinding of longs and fund outflow,” this expert said.
Also Read: Gold Price Today: Negative outlook for this week, says expert; suggests intraday strategy
(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.)