Gold Price Today – 20-05-2021 – DIP! Outlook STRONG, cryptocurrency ban in China BIG POSITIVE, expert says

Gold was fishing in troubled waters on Thursday with the yellow metal trading in the red. The international prices of gold and silver inched downwards on hopes of an economic recovery in the US. The optimism was on the back of ‘tapering’ talk from the US Federal Reserve which boosted US Dollar and treasury yields in the world’s largest economy.

Taking global cues the Indian Commodity market was also was down today. At 5:20 pm, MCX June Gold Futures were trading at Rs 48,455 per 10 gm. The price was down by almost Rs 220 or 0.45 per cent from the previous closing price on Wednesday. Meanwhile, MCX July Silver Futures were also trading negatively around this time. It was lower by almost 0.40 per cent or Rs 258 per kg, trading at Rs 72,116.

See Zee Business Live TV Streaming Below:

Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities is still bullish on Gold and sees the current dip as temporary. He said that banning of cryptocurrency in China will further give a fillip to bullion as people were diverting a significant part of their investments towards it.

Gupta maintains his target on Gold and Silver in the near term. In the international market, Gold was trading at USD 1870. He expects the yellow metal to reach levels around USD 1920 in the near term. 

As for Silver, the price in international market at the time of filing this copy was USD 28. It is expected to reach USD 29, this technical analyst said.

MCX Gold, Silver trading strategy

Gupta advised a Buy on Gold futures at levels around Rs 48,400. He puts the stop loss at Rs 48,200 while the target price at Rs 48,800 on the intraday basis.

Meanwhile, brokerage firm Motilal Oswal expects Gold to trade with a bullish trend with strong support at Rs 48,100 level while intermediate support at Rs 48,250. It recommends a Buy on dips targeting lower support between Rs 48,500 and Rs 48,680.

As for MCX July Futures recommended a Buy in Silver futures at levels around Rs 71,800. He puts the stop loss at Rs 71,200 while the target price at Rs 73,000.

Motilal Oswal, however, sees a sideways trend for MCX silver today with a good resistance at Rs 72,300 and a support at Rs 71,100. 

In the physical markets, Gold was trading at Rs 50,000 while Silver was trading around Rs 74,500. Though, shops are closed in the national capital, one can still buy gold and jewellery online or through one’s trusted jewellers.