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Gold price today: The yellow metal price in the spot market has given fresh breakout at $1835 per ounce levels on closing basis as spot gold price on Friday closed at $1839 levels. Following the spot market closely, gold future contract for February on Multi Commodity Exchange (MCX) closed on Friday at 48,236 per gm levels, 144 lower from its Thursday close. Though, the precious bullion metal came down on Friday in both international and domestic markets, commodity experts are of the opinion that overall outlook for gold is bullish and any dip in gold price should be seen as big buying opportunity in near term.

According to commodity market experts, gold prices coming down on Friday in spot and domestic markets should be seen as profit-booking as the precious metal price has rallied strongly this week. They said that overall gold price outlook is positive and any dip in the yellow metal price should be seen as good buying opportunity by investors. They said that gold price has given breakout at $1835 per ounce levels in the spot market and now it may go up to $1900 to $1910 per ounce levels in next one to two months. In domestic market, they said that MCX gold price today is oscillating around 48,200 per 10 gm and it may go up to 49,200 per 10 gm in this period. They advised gold investors to remain on the bull's side and maintain 'buy on dips' strategy.

Breakout in spot gold price

Expecting sharp rally in gold price; Amit Sajeja, Vice President — Commodity Research at Motilal Oswal said, "After remaining in the range of $1760 to 1835 per ounce for long, gold price has finally given breakout at $1835 levels in the spot market on closing basis and now we can expect spot gold price to hit $1865 per ounce in immediate short term. However, in next one to two months, we can expect spot gold price to go up to $ 1890 to $1910 per ounce levels."

Soaring crude oil price to fuel gold rally

Asked about the triggers that will support gold price rally in near term; Anuj Gupta, Vice President — Commodity & Currency Trade at IIFL Securities said, "Global inflation is going to further worsen as rising crude oil prices are not going to take any pause in near term. In fact Brent Crude oil price is expected to go up to $100 per barrel. This rise in global crude oil prices in last one fortnight has led to weakness in local currency across globe and India is not an exception to it. Rupee has come down from around 74 levels to 74.50 levels and it may go up to 75 levels if crude oil price rally continues for next fortnight."

On how weakness in rupee against dollar can help gold emerge as investors haven; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Indian stock market has witnessed heavy selloff in last four sessions as FIIs are fast fishing out their money from the Indian equity markets. If the weakness in rupee against the US dollar continues further, in that case, FII's return in dollar terms will go down and they may switch to gold as an alternative to equity." Avinash Gorakshkar advised investors to keep an eye on crude oil prices as its movement in next one week to two week is very crucial.

MCX gold price outlook

Asked about gold price target in domestic market, Amit Sajeja of Motilal Oswal said, "MCX gold price may hit 48,650 in immediate short term whereas it may go up to 49,200 levels in next one to two months. However, the move won't be one directional and there can be dips on profit-booking but one should looks at these dips as buying and accumulating opportunity. Those who have position in gold should continue to hold for immediate target of 48,650 levels and 49,000 to 49,200 levels for one to two months target." Amit Sajeja said that those want to take fresh position can buy gold at current levels for the targets mentioned above maintaining stop loss at 47,700 levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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