Gold Price Outlook: Yellow metal slips as dollar rebounds! Should investors worry?

Gold Price Outlook: The rebound in dollar index amid hopes of the stimulus package in the US today led the yellow metal slip. The investors in gold should not worry as the trend continues to remain positive in the medium term, technical analyst Anuj Gupta said. Reiterating his earlier point, Gupta said that Gold will remain in choppy waters till the US election results are declared and this precious metal will continue to trade both ways.
 
His advice to investors is to buy on dips as there will opportunities every now and then.
 
He expects the MCX December Gold Futures to trade in the range-bound manner during this week. The Gold Futures will trade between Rs 51500 and Rs 52000 over this week, Gupta said. He is Deputy Vice President, Commodity and Currency Research at Angel Broking. As for international prices, he said that Gold will end the week around USD 1960
 
The Delhi spot price of Gold at the time of filing of the story was Rs 51,200 per 10 gm Gupta said.
 
At 12:08 pm, the December MCX Gold Futures were trading around Rs 50,944, down by almost 0.3 per cent from the last closing.
 
Silver prices will move in tandem with Gold, he said. The MCX December Silver Futures were trading around Rs 62,700, down by almost 0.6 per cent. The spot price of silver in Delhi was Rs 63000 per 1 kg.
 
The demand for gold and silver is likely to take an upward move as festive season approaches, Gupta said. This segment has a lacklustre performance amid rising prices and enforcement of the lockdown.

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Gupta also said that he expects a good response towards the Sovereign Gold Bonds, which are currently being issued by the Reserve Bank of India (RBI). The seventh tranche is now being issued, which will be followed by five more issues until March of the current financial year.