Gold Price Outlook: How yellow metal is set to perform in month of October - expert speaks

Gold price outlook remains positive in the build-up to the US elections Senior Technical Analyst Anuj Gupta said. Though the first round of debate went to the Democratic candidate Joe Biden, the fight is still far from finished and the markets will shift tracks as the election-day approaches, he added. 

Gupta, who is a Deputy Vice President, Commodity and Currency Research at Angel Broking said that the dollar is also on a weaker footing which is aiding the cause of this precious metal. 

There is traditionally an inverse relationship between the gold price and dollar and the demand for gold rises as the dollar recedes. 

The dollar index slipped 0.2 per cent against its rivals to hover near a one-week low, making gold less expensive for holders of other currencies, Reuters reported today. 

A weak dollar would lead to higher imports from countries like India, he said. 

The MCX October Gold Futures were trading at Rs 50,385 at 12:15 pm on Thursday, up by almost 0.10 per cent from the previous close on Wednesday. 

The Markets will remain closed on Friday on account of Mahatma Gandhi Jayanti.  

Gupta expects gold to remain in an uptrend next week. The technical analyst said that the prices could test Rs 51,000 level by the end of next week. 

The international price of gold is expected to be around US 1920 by the end of next week, he said. 

Spot gold rose 0.3 per cent to USD 1,891.10 per ounce by 0334 GMT, starting the new month on a positive note after it slumped to its biggest monthly drop since late 2016 in September, the Reuters report said. 

As for silver, Gupta said that this precious metal is likely to move in tandem with the gold prices. He expects the price to see an uptick.  

He expects the December Silver Futures to trade around Rs 63,000 per kg on MCX by the end of next week. The prices were up by over 1 per cent around this time as it traded at traded around Rs 60545. 

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The silver futures on CME will likely trade around USD 24.50, he added.