Gold price drop! Expert calls it temporary blip, retains bullish outlook

Gold price dropped to hit a two-week low on Wednesday, but the outlook for yellow metal remains positive, analyst Amit Sajeja told Zee Business. The spot gold on Wednesday dropped to USD 1693.22 per ounce. Sajeja, who is Assistant Vice President, Research at Motilal Oswal said that after every high, there is a sharp drop of USD 70-80, which happened on Wednesday, too.

Sajeja added that he would have become bearish on the yellow metal had it fallen below USD 1690 which is a strong support zone. The analyst said that the precious metal is in a comfortable zone till this level and one can be bullish on it. He added that expectations are of another upside round from here.

The Spot Gold was today trading at around USD 1718 per ounce, which was almost 0.6 per cent up from the previous close.

However, Sajeja said that there was a small barrier at USD 1725 level and once the metal breaches this there could be an upside.

On MCX June Futures, Sajeja said that Gold could trade at Rs 46200-Rs 46300 per 10 gms, initially, but there could soon be a rally around Rs 47100- Rs 47200 over the next 1-2 weeks. He said that he was bullish on the yellow metal.

At 4:35 pm, the Gold June Futures were at Rs 46699 per 10 gms, up by 0.4 per cent from previous close. The yellow metal attained an intraday high of Rs 46719 while an intraday low of Rs 46356 per 10 gms.

See Zee Business Live TV Streaming Below:

Sajeja had earlier told Zee Business that the current uncertainties in the markets across the world and the ongoing US-China tensions will only help the cause of Gold, putting it on a much firmer ground. Among Gold instruments, Exchange Traded Funds (ETFs) were getting a lot of traction in the international markets, he had said.