Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were struggling in the domestic market on Thursday, even as the yellow metal in the international market rose to a five-month high on the back of a fall in US Treasury yields. Gold August futures on MCX were trading lower by Rs 59 at Rs 49,542 per 10 grams, while the last time it closed at Rs 49,601. Silver July futures was trading higher by Rs 82 at Rs 72,760 per kg. In the previous session, the futures price of silver had closed at Rs 72,678 per kg. In line with international trends, gold on MCX has registered gains for the third consecutive month in May. Gold on MCX has gained 5.58 per cent in May, 4 per cent in April and 2.87 per cent in March this year, while MCX gold has fallen 1.09 per cent on a year-on-year (YTD) basis.
“The two primary forces that helped gold strengthen in the month of May are dollar weakness and data indicating a pick-up in inflation. Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities, told Financial Express Online that the treasury yield has also come down, which has further helped gold.
In international markets, at $1,852 per troy ounce, gold enjoyed its highest valuation since January 2021 and prices were sharply higher than the monthly average of $1,761 per troy ounce in the month preceding April. care rating. In May, gold strengthened on fears of rising inflation, a weakening US dollar and the May 19, 2021 cryptocurrency crash. Domestic gold prices include 7.5 per cent import duty, 2.5 per cent agricultural cess and three per cent GST. Gold averaged Rs 47,921.1 per 10 grams during the month, the highest since January 2021.
What is the chart for MCX Gold?
The yellow metal has broken out of a sloping channel pattern at 49100 level with its 200-day SMA on the weekly chart. “This breakout has instilled confidence in the bulls that the trend may extend further,” Rajesh Palviya, Vice President – Research (Head Technical & Derivatives), Axis Securities, told Financial Express Online. He added that the chart pattern indicates a target of Rs 55,500 and the next target is above Rs 60,000 (as per Elliott wave it suggests a rally towards Rs 64,000). “Just a drop below 45000 would negate our bullish outlook,” he said.
Where is MCX gold headed in the near future?
Analysts believe that there should be a correction of 3-4% before moving towards the all-time high. In the short term, we expect some reversal in gold prices,” said Rahul Gupta, Head of Research- Currency Emkay Global Financial Services, told Financial Express Online. He said the yellow metal needs to trade above Rs 49,600 continuously to extend the current rally to Rs 49,725-49,900. People at Tradebulls Securities expect MCX gold to test Rs 51,500-52,000 in the near future. Bhavik Patel said, “The target of gold on MCX for Diwali 2021 is around Rs 52,000 per 10 grams.
Should you buy, hold or sell gold?
CARE Ratings said in a report that the demand for gold may increase after the easing of lockdown restrictions, but the pick-up is not likely to be strong, as gold prices are unlikely to fall significantly. The demand for physical gold remained negligible during May as most of the jewelery stores remained closed due to intermittent lockdown in states and high international gold prices.
Bhavik Patel advised that those who have already bought gold should keep up to Rs 52,000. He said that fresh investment should be made only around Rs 48,000. “From the current levels, we would recommend waiting for some downside before making fresh purchases,” he added.
Rahul Gupta said that ‘Sell on Rise’ is advised for short term. Whereas for the longer term, any downside will be a buying opportunity as the view still remains bullish towards Rs 52,000. 49,480-49,400 will be seen till the price trades below the resistance. “Any major downside will start towards Rs 48,000-47,500 only when prices are below Rs 49,150,” he added.
(The views in this story are expressed by the research and relevant experts of the brokerage firm. Financial Express Online takes no responsibility for their advice. Please consult your investment advisor before investing.)
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