Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading lower on Tuesday, even as international spot prices hit a three and a half month highs on a weak US dollar and growing inflationary pressure which lifted bullion’s appeal as an inflation hedge. On Multi Commodity Exchange, gold June futures were trading Rs 67 down at Rs 48,407 per 10 grams, as against the previous close of Rs 48,474. Silver July futures, on the other hand, surged Rs 728 or nearly one per cent to top Rs 74,052 per kg. Silver futures settled at Rs 73,324 per kg in the previous session. The threat of rising inflation, coupled with economic uncertainty following disappointing US employment and retail numbers is prompting investors to find safe-haven assets again, said an analyst.
Gold tends to outperform when economic data is weakening and underperforms when economic prospects improve. “Falling of the cryptocurrency market also helped gold in giving a strong rally yesterday,” Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities, told Financial Express Online. Hedge fund managers have started increasing their speculative long positions and reducing their short positions. “We are bullish in gold and expect gold to test Rs 48,800- 49,400 this week. Any dips near Rs 47,900 is ideal level for taking long positions with stop loss of Rs 47,400,” Patel added.
MCX gold and silver prices were trading at nearly four-month high levels. Weakness in the dollar and geopolitical tension between Israel and Gaza support the bullion prices. “We are expecting gold and silver to rally further. Traders can go for buy in MCX gold at 48300 levels with the stop loss of 48000 levels for the target of 49000 levels. Silver can be buy at 73500 levels for the target of 75000 levels,” Anuj Gupta, VP — Commodity and Currencies Research, IIFL Securities, told Financial Express Online
Even as MCX gold prices were trading muted in Tuesday’s trade, analysts expect it to move in positive territory. In the previous session, MCX gold broke the key resistance of Rs 48,400 on a daily closing basis. “We expect the price will head towards a 200-day moving average which comes to around Rs 49,000,” NS Ramaswamy, Head of Commodities, Ventura Securities said. On the other hand, momentum indicators RSI trading in the positive zone are going to further support the MCX gold price on the higher side. “Going forward, the 200-day simple moving average will act as a strong hurdle zone for MCX gold price in the coming days, and breaking above which the next leg of the rally will head towards Rs 50,000-50,500 in the coming trading sessions.
Globally, spot gold was up 0.2 per cent at $1,868.89 per ounce, after hitting its highest since February 1, 2021 in early Asian trade. US gold futures rose 0.1 per cent to $1,869.40 per ounce. The dollar teetered near multi-month lows against European currencies. A weaker greenback makes gold more appealing for other currency holders, according to Reuters.