Gold has strong support at $1720 per ounce in international market and it may go up to $1800 per ounce in immediate short-term, believe commodity market experts
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Gold price today at MCX (Multi Commodity Exchange) on Saturday crashed 1.40 per cent and closed at ₹47,213 per 10 gm levels — dipping ₹667 per 10 gm in single session. Silver price also dipped 0.45 per cent on Saturday and closed at ₹63,271 per kg on MCX. The yellow metal has come down to these levels after testing ₹48,000 per 10 gm on Friday.
According to commodity market experts, this dip in the precious metal is caused by profit-booking as overall sentiment for precious bullion metal is still positive. They said that rising crude oil prices fueling global inflation and weak rupee against the US dollar is the major trigger that will continue to support gold price rally in next one month.
Commodity market experts said that gold has strong support at $1720 per ounce in international market and it may go up to $1800 per ounce in immediate short-term. After breaching this hurdle, the precious yellow metal may go up to $1850 per ounce in around one month time-horizon. They advised gold investors to buy gold at current ₹47,300 per 10 gm levels and continue accumulating up to ₹46,900 levels maintaining stop loss at ₹46,600 per 10 gm levels at MCX.
Speaking on gold price outlook; Anuj Gupta, Vice President — Commodity & Currency Trade at IIFL Securities said, "Rising crude oil prices fueling global inflation and weak rupee against US dollar is expected to continue further. So, overall sentiment for gold price is still positive. Recent dip in gold price after it touched ₹48,000 per 10 gm on MCX on Friday should be seen as profit-booking ahead of fresh rally in the precious metal price. One should look at this dip as an opportunity to buy rather getting panic from this sharp dip in the bullion metal price."
Anuj Gupta of IIFL Securities said that in international market gold price has strong support at $1720 per ounce levels and it is expected to remain intact. On the upper side, the yellow metal may soon hit $1800 to $1820 per ounce level once the profit-booking ends. Gupta said that gold price may go up to $1850 per ounce in the international market in next one month and hence one should maintain buy on dips as strategy keeping the above-mentioned levels in mind.
Echoing with Anuj Gupta's views; Manoj Dalmia, Director & Founder at Proficient Equities Private Limited said, "The falling yield on treasuries and the US Fed not revealing when they are going to raise key interest rates would also support gold price rally in near-term. So, one can buy gold at current levels as it may go up to ₹49,600 in next one month on MCX."
Unveiling investment strategy to gold buyers, Anuj Gupta of IIFL Securities said, "One can buy gold at current levels maintaining stop loss at ₹46,600 for immediate target of ₹48,000 per 10 gm on MCX. One can hold gold further for one month target of ₹49,000 to ₹49,500 per 10 gm on MCX."
On Thursday, global gold prices hit a one-month high of over $1,800. Both the dollar index and benchmark US 10-year Treasury yields pulled back from their multi-month highs. The yellow metal price was flat to up on Thursday after number of Americans filing new claims for unemployment benefits dropped below 3 lakh last week for the first time in 19 months.