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Gold price today: Multi Commodity Exchange or MCX gold rate on Friday dipped ₹32 per 10 gm and closed at ₹48,120 levels, logging ₹483 slide in a week. This fall in February future contract of yellow metal price has taken place despite rising cases of Omicron, escalating crude oil price, jump in global inflation concerns, etc.
According to commodity market experts, this fall in gold price has happened due to the weakness in US dollar (USD) against Indian National Rupee (INR). They said that rupee's gain against dollar has neutralised the chances of gold price rise otherwise overall sentiment for MCX gold rate is still bullish.
Major triggers for gold price today
Bullion experts said that gold price in spot market is trading in the range of $1760 to $1835 per ounce and it is expected to move in this rang in upcoming week as well. They said that MCX gold rate is also expected to move in ₹48,000 to ₹48,700 per 10 gm range in near term till there is breakage on either side of the range in the spot market. They said that Indian rupee's gain against US dollar won't sustain for long as rising crude oil price is expected to push global inflation, which may finally help gold to glitter in near term. They advised gold investors to maintain 'buy on dip' strategy and strictly suggested to avoid any idea of 'sell on rise' as gold may break $1835 per ounce hurdle in near term and go up to $1880 per ounce levels in short term.
Crude oil price to fuel gold rate in near term
Speaking on gold price outlook; Anuj Gupta, Vice President — Commodity & Currency Trade at IIFL Securities said, "MCX gold rate has dipped this week as Indian rupee gained against the US dollar in the Forex Market. However, this rise in rupee against dollar won't sustain for long as crude oil price has been rising sharply, which may fuel concern for global inflation. Apart from this, rising Omicron cases in India and overseas are also supportive for gold price rally in near term. So, overall sentiment for gold price is positive and one should maintain buy on dips strategy."
Advising gold investors to keep an eye on the yellow metal movement in spot market; Amit Sajeja, Vice President — Commodity & Currency Research at Motilalm Oswal said, "In near term, gold price is range-bound with positive bias. It is currently trading in the range of $1760 to $1835 per ounce where one should buy gold around $1780 per ounce levels and book profit when gold rate is around $1820 to $1825 per ounce levels."
Amit Sajeja of Motilal Oswal went on to add that in near term, this range is expected to remain intact and one should continue to maintain 'buy on dips' strategy till either side of this range is not breached.
MCX gold rate prediction for short term
Anuj Gupta of IIFL Securities said that overall sentiment of gold price is positive and said that MCX gold rates may go up to ₹48,700 per 10 gm levels in near term citing, "Gold investors can buy gold at ₹48,000 levels for near term targets of ₹48,500 and ₹48,700 per 10 gm levels maintaining stop loss at ₹47,600 per 10 gm levels." He said that gold price in spot market is expected to go up to $1880 per ounce levels once it manages to breach the upper hurdle of $1835. In that case, gold price on MCX may go up to ₹49,300 to ₹49,500 levels, Anuj Gupta of IIFL Securities concluded.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
