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Business News/ Markets / Commodities/  Gold price dips on physical market adjustment. Should you buy for fresh rally?
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Gold price dips on physical market adjustment. Should you buy for fresh rally?

Gold rate today is in $1,920 to $2,010 per ounce range

Gold price is expected to remain range-bound till Akshay Tritiya falling next month in April.Premium
Gold price is expected to remain range-bound till Akshay Tritiya falling next month in April.

Gold rate today witnessed profit booking as physical market is trying to adjust gold prices with the recent rise in future market. Gold future contract for April 2023 on Multi Commodity Exchange (MCX) opened higher at 59,300 per 10 gm levels but witnessed profit booking within few minutes of opening bell. In international spot market, gold prices opened higher but soon came under the profit-booking stress and hit intraday low of $$1,969.54 per ounce levels.

According to commodity market experts, gold prices are going through profit-booking after sharp rise in the yellow metal. They said that the dip is because of the physical market adjustment with the recent rise in future markets. Once the gap is bridged, we can expect fresh round of rally in the precious bullion metaal and overall outlook fro gold is still bullish. They said that gold price is expected to remain range-bound till Akshay Tritiya falling on next month. Experts said that gold price would remain in $1,920 to $2,010 range in international market whereas it is expected to remain in 57,500 to 60,500 per 10 gm range till next trigger or ahead of Akshay Tritiya.

Silver rate today is also under pressure and the white metal is quoting 70,285 per kg on MCX, logging 126 per kg loss within few hours of market opening.

Triggers for gold price

On reason for fall in gold rates today, Anuj Gupta, Vice President — Research at IIFL Securities said, "In recent sessions, gold price witnessed sharp upside rally that created big gap in between the physical and future market. So, this dip in gold price should be seen as price adjustment by physical market with the future market. Apart from this, the bullion market is expected to remain sideways as traders and investors of the bullion market are busy for their annual book closure as financial year 2022-23 is about to end."

Anuj Gupta said that Gold price on MCX is expected to remain in 57,500 to 60,500 range whereas in international market, it is expected to move in between $1,920 to $2,010 per ounce range. He advised investors to maintain buy on dips as overall outlook for gold is still bullish.

Advising gold investors to avoid taking any short position, Nirpendra Yadav, Senior Commodity Research Analyst, Swastika Investmart said, "Due to the possibility of a financial crisis, the demand for a safe haven for investment has increased among investors, resulting in which the brightness of gold and silver continuously increasing."

"Precious metals are likely to remain bullish this week. Support in gold lies at 58,000 per 10 gm and resistance lies at 60,000 levels. In silver, support is near 68,000 per kg and resistance is near 72,000 levels," Nirpendra Yadav said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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Published: 27 Mar 2023, 10:58 AM IST
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