Gold Price Outlook: Strong equity markets to take some sheen off yellow metal, expert says

Gold prices are likely to soften over 1-week period on the back of stronger outlook for global equity markets, coupled with the strengthening dollar, Senior Technical Analyst Anuj Gupta said. The strong performance of equity markets around this time will carry on in the next week too, he said. This will drive some investments towards the equity markets as investors will look to diversify their portfolio, he further said.   

MCX October Gold Futures were trading in a negative territory on Thursday and were down by over 0.5 per cent trading at Rs 51,867 around 7 pm. Gupta, who is a Deputy Vice President, Commodity and Currency Research at Angel Broking said Gold futures may likely take some beating over the next week. He expects the yellow metal to come around Rs 49,000 levels. 

In Mumbai, the spot price of standard gold (99.5) was 51765 while it was Rs 51973 for pure gold (99.9), PTI reported.  

Gold eased on Friday as the dollar edged higher, denting bullion`s appeal and setting it on track for a second weekly decline, while lingering concerns over the path to recovery from the coronavirus limited losses, Reuters reported. Spot gold was down 0.5 per cent to USD 1,933.85 per ounce at 0949 GMT, while US gold futures eased 0.3 per cent to USD 1,940.00 per ounce. 

Gupta expects the spot price of international gold to come around USD 1880. 

For the week, gold is down about 0.5 per cent, having slumped more than 3 per cent earlier this week.    

As for silver, the MCX September Silver Futures will likely come down to around Rs 63,000 per kg, he said. Today, the silver futures were trading around Rs 66,500, down by 1.6 per cent around this time. The spot price of silver was Rs 66,374 in Mumbai.

See Zee Business Live TV Streaming Below:  

The technical analyst said that the spot price of international silver could likely be around USD 24 per ounce.