Home / Money / Personal Finance /  Gold price today: Yellow metal logs 414 weekly gain on MCX. Should you buy?

Gold price today: After rising for two successive days, yellow metal price on Multi Commodity Exchange (MCX) witnessed profit-booking during weekend trade on Friday. However, after ending at 46,603 levels, gold rate today on MCX is 414 higher from its last Friday close of 48,189 per 10 gm. 

According to commodity market experts, overall sentiment for gold is still bullish as market has already discounted the Fed's hawkish stance on bond tapering. They said that precious bullion metal price may go up to 49,500 per 10 gm in next fortnight to one month time from current gold rate of 48,603 per 10 gm on MCX.

Gold price outlook

Expecting bull run in gold price to continue; Amit Sajeja, Vice President — Commodity Research at Motilal Oswal said, "Federal Reserve’s bond tapering announcement last week was on the expected lines of the markets. In fact, the market witnessed sharp rebound in gold rate after the Fed meeting and Friday dip should be taken as profit booking on the weekend trade. Gold has strong support at $1760 levels and it is facing strong resistance at $1835 per ounce levels. This range of $1760 to $1835 is expected to continue in short term and I don't see breaching of any of these two levels in current market scenario. So, one should maintain buy on dips strategy." 

Amit Sajeja of Motilal Oswal advised gold investors to buy gold when it is around $1770-75 per ounce levels whereas book profit when it is around $1820-25 per ounce levels in spot market.

On suggestion to domestic gold investors; Anuj Gupta, Vice President — Commodity & Currency Trade at IIFL Securities said, "Gold price has strong support at 47,700 per 10 gm levels on MCX. For immediate short-term, one can buy gold at around 48,500 levels for 48,900 per 10 gm target keeping stop loss at 48,250 mark. However, for short-term investors who want to buy and hold the yellow metal for a fortnight to one month, they can keep on buying gold on every dip keeping stop loss at 47,700 for 15 days to one month target of 49,300 to 49,500 per 10 gm on MCX."

Gold price dynamics

Highlighting upon the gold price dynamics Sugandha Sachdeva, Vice President-Commodity & Currency Research at Religare Broking Ltd said, "Gold prices have witnessed recovery even as the Fed has doubled the pace of bond tapering in their latest meeting and have opened the door for three rate hikes in the US in 2022 amid rising price pressures and improvement in the labour market. Even though the Fed has sounded hawkish but it was largely on expected lines and market is expected to adjust to these monetary tightening measures in coming days. Any dip in gold prices in near-term should be seen as a good buying opportunity by gold investors."

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

Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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