Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading in red on Tuesday, even as yellow metal hit a one-month high globally. On Multi Commodity Exchange, gold October futures were down Rs 96 or 0.2 per cent at Rs 51,530 per 10 gram. Silver September futures fell Rs 256 or 0.44 per cent to Rs 58,070 per kg. Globally, yellow metal hit a four-week high as a weaker dollar and a dip in U.S. Treasury yields boosted demand for the safe-haven metal amid mounting worries over an economic slowdown, according to Reuters. Spot gold was up 0.4% at $1,778.69 per ounce, its highest since July 5. U.S. gold futures gained 0.2% to $1,791.10 per ounce.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
Gold is trading at a three week high as sentiment has changed from bearish to neutral after the US Fed decided to slow the pace of rate hike and be data dependent going forward. Money managers had increased their speculative long positions by 1160 contracts although they have also increased short positions by 1515 contracts. Gold’s net short positioning increased by 19,093 contracts. This shows that hedge funds still believe the recent bounce is short covering and gold has room to go down. Despite the US Fed stating the US economy is not in recession, the difference between the 10-year and 2-year US yields is -0.22 indicating recession is on the way. In the past fifty years, there have been eight recession and gold has risen in six out of the last eight recession. In two of the recession, it had declined but in single digits. So in the medium term, we anticipate gold to trade higher. In the short term too we would advocate buy on dips till 50500 is not breached.
Pritam Patnaik, Head – Commodities, HNI & NRI Acquisitions, Axis Securities
The worsening global economy has helped boost demand for safe-haven gold. A weakening dollar and falling bond yields have further supported the cause. A weak US GDP, disappointing manufacturing data from both US and Eurozone, and a struggling Chinese factory activity number have helped ramp up the gold demand. In the recent past, we had witnessed that a large part of the safe haven flows was moving towards the dollar index rather than gold, but in the last few weeks, gold seems to be back in vogue. This change in trend is due to the hawkish tone adopted by the US Fed and worsening economic conditions in the US. We expect gold to face some resistance around $1800, but every dip will be a good buying opportunity.
Tapan Patel, Senior Analyst — Commodities, HDFC Securities
Gold prices traded steady on Tuesday with spot gold prices at COMEX were trading 0.18% up near $1775 per ounce in the morning trade. MCX Gold October futures traded firm near Rs. 51563 per 10 gram in the opening trade. Gold prices rose on safe haven buying as weak economic data from across the world boosted recession fears. The dollar index was 0.21% down near 105.11 in the morning. We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1760 and resistance at $1790 per ounce. MCX Gold October support lies at Rs. 51200 and resistance at Rs. 51800 per 10 gram.
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