Gold Price Today, Outlook, Forecast: Gold prices fell in India on Akshaya Tritiya as in international markets yellow metal declined on a firmer dollar which made bullion more expensive for other currency holders. On MCX, gold June futures fell Rs 70 to Rs 47,337 per 10 gram, as against the previous close of Rs 47,438. Silver July futures, on the other hand, edged up Rs 97 or 0.14 per cent to Rs 70,570 per kg, as compared to the previous day close of Rs 70,473 per kg.
Gold has given a modest gain of nearly 2 per cent since Akshaya Tritiya 2020, owing to a rise in US dollar, 10-year Treasury yields, record-high levels in cryptocurrencies and surge in equity markets. “Since money rotates from one asset class to another, gold had tough competition this year as money managers reduced their long positions and diverted their funds in equity assets and in cryptocurrencies,” Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities, told Financial Express Online.
Gold outlook bright as inflation hedge
Patel remains bullish on gold for the coming year as inflationary pressures are rising and gold is best hedged against inflation. He advises that any level between Rs 45,500-46,500 is ideal for investing in physical gold. Gold may not deliver high double-digit returns for next year but looking at the inflationary pressure, bubbles in the equity asset class, gold is a far better choice as hedging and diversifying against your traditional equity portfolio, he added.
Globally, spot gold was down 0.2 per cent at $1,823.77 per ounce. Bullion lost 0.4 per cent so far this week. US gold futures were steady at $1,823.20. The dollar index held firm near a one-week high, and was set for a weekly gain against its rivals, according to Reuters.
Gold prices have been a laggard and are underperforming other asset classes so far. The precious metal is almost 3.5 per cent down on a yearly basis in the international markets and around 4.5 per cent in the Indian markets. “However, prices are back in action since last month, after forming a base close to Rs 43,200 per 10gm mark on the domestic bourses, corresponding to the $1680/oz mark in the international market,” analysts at Religare Broking said. The yellow metal is gaining traction after approaching an oversold region on the weekly chart as indicated by technical oscillators, coupled with 100-week moving average support.
Technical charts signal rally in gold prices
Analysts believe that as prices are trading above 50 days moving average at Rs 45,900 per 10gm, one can expect prices to showcase strength in the intermediate-term where firm support could be seen at Rs 43,200 per 10 gm. A break of the same would however mean lower levels of around Rs 39,500 per 10gm, coinciding with its 200 weeks EMA in the domestic markets. Pointing to the higher side, prices could make a move towards Rs 48,500 per 10gm initially, which would be an immediate hurdle ahead, while stepping above the same, the yellow metal is expected to witness an upswing towards Rs 52,000 per 10gm mark from a medium term perspective. “From a longer-term perspective, the room is still open for levels of around Rs 60,000 per 10gm, amid anticipation of a low-interest-rate environment, continued fiscal support, inflation overshooting expectations and currency debasement,” those at Religare Broking added.
(The views in this story are expressed by the respective experts of research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)