Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading firm in India on Tuesday, even as the yellow metal traded flat in the international market. On the Multi Commodity Exchange, gold December futures were up Rs 96 or 0.20 per cent at Rs 47,147 per 10 gram. In the previous session, gold ended at Rs 47,051. Silver December futures fell Rs 141 or 0.23 per cent to Rs 61,603 per kg. In the previous session, silver ended at Rs 61,744. Globally, gold traded flat in early Asian trade as the dollar held firm on expectations that the Federal Reserve will announce a tapering of its bond purchases next month. Spot gold was unchanged at $1,753.77 per ounce, while US gold futures were little changed at $1,754.90.
Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities
Since June, gold has been stuck in a downward trend, with stronger U.S. dollar and higher U.S. Treasury yields keeping pressure on prices. Three reasons for gold underperforming is strength in US dollar, likelihood of Fed tapering their assets starting from November and rise in US Treasury Yields. Gold also has been fighting against the rise of cryptocurrencies Bitcoin. Inflationary rising pressure because of a rally in commodity prices and crude is not benefiting gold as people are flocking to the safe haven asset of US Treasury yields and US dollar. Gold and Bitcoin have negative correlation and so with rising Bitcoin prices, large amount of speculative money is moving from gold to Bitcoin. Some of the central banks have started rising interest rates like South Korea, Brazil, Norway and New Zealand and with such inflationary pressure, the world will have to follow suit so the direction would be towards tightening and not easing.
Tighter monetary policy is usually bad news for gold as it triggers a rise in government bond yields. In MCX, because of the weak Rupee, Gold is looking strong on short term chart but in COMEX, the trend still is sideways to negative. Range for today is likely between 46900-47350.
Ravi Singh, Vice President & Head of Research, Share India Securities
Gold Mcx closed yesterday on a positive note. gold may remain in a narrow range between 46850 – 47200 with a bias towards the buying side.
Buy Zone Above – 47100 for the target of 47350
Sell Zone Below – 46850 for the target of 46550
NS Ramaswamy, Head of Commodities, Ventura Securities
MCX GOLD DEC prices are now trading below key averages on daily chart. The RSI indicator is also trading in a bearish zone which suggests further weakness in the counter. Prices are likely to trade with negative bias only for intraday. If prices break below 45,900 level on hourly closing basis then we may see prices heading lower towards 45,500 level for intraday. On the upside, key resistance is seen at 46,400 level which is 100 EMA level on hourly chart for intraday.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities
COMEX gold trades marginally higher near $1758/oz after a 0.1% decline yesterday. Gold witnessed a brief rally on Friday in reaction to US non-farm payrolls data but has retreated to trade in a narrow range near $1750/oz level. Weighing on gold is firmness in the US dollar index amid higher bond yields, monetary tightening expectations and safe haven buying. Gold may continue to trade in a range as Fed’s monetary tightening expectations may be countered by inflation and growth worries however we expect buying interest to emerge at lower levels as rising challenges to the global economy may increase its safe haven appeal.
(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)