Gold price outlook: Yellow metal smashes all weekly outlooks to attain life's high - yet again!

MCX Gold is on a roll as the yellow metal smashed all the weekly predictions to attain a new life time high of Rs 49348 per 10 gram on Wednesday. The August Gold Futures ended at Rs 49134, up over 0.6 per cent on Wednesday. The outlook for Gold remains strong for the remaining week, Senior Technical Analyst Anuj Gupta said adding that it may attain levels around Rs 50000 by the end of Friday’s trading session.

At 9:50 am, the gold futures were trading around Rs 49172. Gupta who is a Deputy Vice President, Commodity and Currency Research at Angel Broking puts the intraday stop loss at Rs 48900 while the target price of Rs 49650.

The precious metal is also strong in the international markets. On Wednesday, Gold attained an important milestone going past USD 1,800 mark - its highest since September 2011. Spot gold had jumped 1 per cent to USD 1,811.55 per ounce by 11:12 am EDT (1512 GMT), Reuters reported. US gold futures gained 0.7 per cent to USD 1,822.

The existing economic situation coupled with the rising coronavirus situation is forcing people to bet on gold – an investment instrument usually preferred during the times of economic uncertainties to hedge loses.

Gupta said that the most recent report by International Monetary Fund (IMF) is an indicator of how things will be, till the year 2021. The outlook for the financial year 2020-21 and 2021-22 have already been lowered, he said.

The technical analyst was also bullish on silver, indicating that this precious metal will also find traction among investors who cannot afford gold. He added that this year’s monsoon has been good and may attract interests of people especially in the rural parts of the country.

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The September Silver Futures were trading at Rs 51,665 per kg, up by over 0.5 per cent from the Wednesday close.