Gold Price Outlook: Experts say, buy yellow metal on price correction

Gold price will likely remain choppy until the US Election results are declared, at least two experts have told Zee Business Web Team. Amit Sajeja, Assistant Vice President, Research at Motilal Oswal said that the yellow metal will trade both ways throughout October and early November as the biggest global event - the US election - unfolds.  

Echoing similar sentiments, Senior Technical Analyst Anuj Gupta said that elections are still widely open and the markets will react differently depending upon news that comes out.  

Both analysts were however, of the view that the underlying trend in gold and silver still remains positive in the medium term.  

Sajeja said that there will be buying opportunities throughout the month as he sees corrections from the current levels. He said that the levels till Rs 48,000 are open on the downside for MCX Gold.  

He further said that there could be news-based triggers like the recent news around US President Donald Trump testing positive, giving an upward move to the precious metals.  

Gupta, who is a Deputy Vice President, Commodity and Currency Research at Angel Broking said that the dollar is also on a weaker footing aiding the cause of this precious metal. A weak dollar will make gold cheaper for importers.  

Gupta said that the MCX Gold is expected to trade in a range-bound manner between Rs 51500 and Rs 51800 by the end of this week.

The December Gold Futures on Tuesday settled at Rs 50465, down by 0.3 per cent from the close on Monday. The spot price of Standard Gold (99.5) was Rs 50840 per 10 gram while that of Pure Gold (99.9) was Rs 51044, PTI reported.  

As for MCX Silver Sajeja said that he expected high liquidity with a strong support zone around Rs 55000. There trade will be on both sides but the fall would not sustain for long, he added. He expected MCX silver to go as high as Rs 80,000-Rs 82,000 in 9-12 months.

In the near term, MCX Silver is likely to trade in the range between Rs 63,000 and Rs 64,000, Gupta said. He said that the international price could be between USD 24.5 and USD 25 over this week.  

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The December Silver Futures ended at Rs 60,490 on Tuesday, down by over 2.3 per cent from the previous close. The Spot price of silver in Mumbai was Rs 61,112 on Tuesday, PTI reported.