Gold Price Today June 22: OPPORTUNITY for fresh long-term investments - What yellow metal buyers, investors should know

June has been a good month for investors who have been planning to make fresh investments in yellow metal as the prices have come down appreciable this month not just in Gold but silver as well. A dip in prices is an opportunity for fresh moves in bullion, Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL said.  

Gupta said that the MCX Gold Futures have become cheaper by over 4.6 per cent in June while MCX Silver Futures prices have come down by over 6 per cent during this period. In terms of value, Gold Futures prices have dipped by Rs 2319 per 10 gram while Silver Futures prices by Rs 4437 per kg. 

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As for domestic prices, the fall has started reflecting not only on exchanges but in the physical markets too, Gupta said. In Delhi, the price of physical gold has come down to Rs 47,500 per 10 gram while that of silver is Rs 67,000, Gupta said. 

In Noida jewellery markets, the prices are more or less similar, the VP said.   

The fall in prices have been more severe over the last two weeks. This has to do with multiple factors that have transpired during this period. Key reasons include a stronger US Dollar, US Federal Reserve commentary on interest rates and a reduction in employment numbers.  

He expects more correction in the international prices, going forward, but that could have limited impact because of strengthening US Dollar leading higher exchange rates.  

Gold futures on Tuesday were trading around USD 1783 while Silver futures were trading around USD 25.88. He expects Gold Futures to test levels around USD 1740 while Silver Futures to test levels around USD 24.50 within a fortnight if the negative sentiments continue.          

Gold and Silver futures prices were hit on Tuesday as well as the former was down by Rs 93 while the latter corrected by Rs 282 around 1:30 pm.  

MCX Gold Trading Strategy

On Tuesday, MCX August Gold Futures were trading at Rs 46,981 per 10 gm, getting cheaper by Rs 93 or almost 0.2 per cent from the last closing price on Monday. His strategy for today is to Sell at Rs 47,200. He puts the stop loss at Rs 47,450. He puts the target price at Rs 46,700.  

MCX Silver Trading Strategy  

Meanwhile, MCX July Silver Futures were trading at Rs 67,480 per kg on Tuesday around this time, down by Rs 282 or 0.42 per cent from the last closing price on Monday. He recommended selling at Rs 67,800. He puts the stop loss at Rs 68,300 while the target price at Rs 67,000.  

As for prices in Dubai, 24k Gold was trading at AED 216.50 (4,371.11 Indian Rupee) per gram while 22k was trading at AED 203.50 (4,108.70 Indian Rupee). This information has been sourced from Dubai Gold & Jewellery Group (DGJG) website. The website claims DGJG to be the largest trade body for Dubai’s jewellery industry (DGJG).  

The trend in bullion is expected to remain mixed over this week, Gupta said.