Gold Price To Fall? This is rate yellow metal may well hit and very soon at that - experts prediction
Gold price outlook is positive in the medium term despite the recent jitters which saw significant corrections in MCX Gold Futures price, Senior Technical Analyst Anuj Gupta said. What was the reason behind this fall in gold price? Gupta said that this correction is primarily to bring parity in the prices between the physical gold and Gold futures
Gold price outlook is positive in the medium term despite the recent jitters which saw significant corrections in MCX Gold Futures price, Senior Technical Analyst Anuj Gupta said. What was the reason behind this fall in gold price? Gupta said that this correction is primarily to bring parity in the prices between the physical gold and Gold futures. He said that the yellow metal has not appreciated as much in the physical market as on the exchanges and the gap was unsustainable leading to fall in gold prices.
On Tuesday, October Gold Futures ended at Rs 51,929 per 10 gm. At 7:50 pm on Wednesday, the October Gold Futures were up by almost 0.3 per cent, trading at Rs 52,063.
Gupta, who is a Deputy Vice President, Commodity and Currency Research at Angel Broking said Gold futures are expected to trade between Rs 49000 – Rs 52000 over the next two trading sessions. Importantly, this is an indication of a further downward correction in the near term.
He said that the coronavirus vaccine developed by Russia may temporarily weaken the case for bullion and investors may find green pastures in equities. He was however, hopeful that the yellow metal will bounce back amid tensions persisting between the US and China.
MCX September Silver Futures today continued to trade downward after ending at Rs 66,934 on Tuesday. It was trading at Rs 66,238 per kg around this time, down by almost 1 per cent from the last closing.
As for the international prices, Gold rebounded in volatile trade on Wednesday, jumping above USD 1,900 after its steepest sell-off in seven years, as data showed Britain`s economy shrank by a record 20.4 per cent between April and June, fuelling coronavirus-led slowdown fears, Reuters reported.
Spot gold, which had its steepest sell-off in more than seven years on Tuesday, gained as much as 2 per cent and by 0943 GMT rose 0.9 per cent to USD 1,929.09 per ounce, erasing sharp losses from earlier in the Asian session, the Reuters report said.
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U.S. gold futures fell 0.3 per cent to USD 1,941.50 per ounce, while silver also rose, gaining 3.3 USD to USD 25.61 per ounce, after slumping 15 per cent on Tuesday.
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