Gold Price Outlook – Gold falls by Rs 280 on Monday, Silver falls by Rs 128; expert see bounce back, recommends buy on dips

After remaining under pressure during the previous week, Gold and Silver prices remained under pressure on Monday too as the price of MCX Gold fell by Rs 280 around 6:50 pm. Meanwhile, silver futures fell by Rs 128 around this time. Expert Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking gives the complete strategy for the next week. 

The senior technical analyst reiterated his last week stand saying the outlook for Gold and Silver remains week in the near term.    

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Gold, Silver Price Indicators – Negatives  

1. Strengthening US Dollar to weaken Gold and Silver in the international market, Gupta said. The dollar is set for a second weekly gain after rallying on Friday, on strong labour market data. 
2. The USD has risen 0.35 per cent to 91.96. 
3. Negative for Bullions - Gold may test USD 1680 to USD 1670 levels, and silver may test USD 24 levels. 
4.  Physical Gold and Silver price may not fall appreciably as higher USD to make bullion import dearer.   

Gold, Silver Price Indicators – Positives  

1. USD strengthening could be temporary as economists suggest the greenback's resurgence will be limited as low inflation will persist. 
2. Bounce back expected as rising crude oil price could create inflationary pressure, bringing shine back in Gold and Silver.  

The price of Gold is down by over Rs 12,000 from the highs of Rs 57,000 per 10 gm, and in this year alone, the prices have come down by Rs 5500 according to Gupta. This is over 9 per cent depreciation in the last two months. If you are one of those people who have not been able to invest in gold and silver because of high prices can now do it.   

Meanwhile, Silver has held its ground, falling by just over Rs 100 or 0.15 per cent since the beginning of 2021, Gupta said. 

The Senior Technical Analyst said that as there is some weakness being seen in Gold and Silver, it is time to invest in Gold and Silver. 

MCX Gold, Silver trading strategy 

At 6:50 pm on Monday, the MCX April Gold Futures were trading down by Rs 280 from the previous closing price on Friday. The Gold Futures were trading at Rs 44,403 per 10 gm. His strategy is Buy Gold Futures. He recommended Buying around Rs 44,300. He puts the stop loss at Rs 44,000 while the target price at Rs 44,800. 

Meanwhile, MCX May Silver futures were trading at Rs 65,475 per kg around this time, cheaper by Rs 128 or 0.2 per cent from the last closing price on Friday. He recommended Buying in Silver Futures at Rs 65,000. He puts the stop loss at Rs 64,200 while the target price at Rs 67,000. 

International Gold Spot price 

The international spot price of gold is USD 1690. The near term outlook remains negative as the prices could come down to USD 1680 internationally, Gupta said.   

International Spot price of Silver 

The international spot price of Silver is also down from USD 25.20 to USD 25.10. The near term outlook remains negative as the prices could come down to USD 24 internationally, Gupta said. 

Gold, Silver Spot price in Delhi 

The spot price of Gold in Delhi is around Rs 46,500, which is up from Rs 46,000 from the last reporting price on Friday. The spot price of silver is Rs 68,000, which has remained unchanged from the last reporting price of Friday.