Gold Price Outlook: Is Rs 60,000 on cards? Up over 6% this year, MCX gold futures have 20% upside

Gold Price Today: MCX Gold futures made a new lifetime high of Rs 58,847 on Thursday and are set to test levels of Rs 60,000 per 10 gram by March according to commodity and currency expert Anuj Gupta. While, the yellow metal futures have gained nearly 6.27 per cent in January, they are likely to gain another 20 per cent in the next one month, Gupta opines.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities said that US Federal Reserve’s commentary on inflation and economy was one of uncertainty and that could increase the appeal for bullion over the positional term period.

On Wednesday, the US Central Bank Chair Jerome Powell said that Fed will do what it takes to bring down inflation to 2 per cent target. While ruling out any possibility of rate cut, Powell was non-committal on the time of rate pause.

Fed increased the policy rate by 25bps on taking it to the range of 4.50-4.75. The quantum of hike has come down in the last two policies. In December Monetary Policy it was 50bps.

The strength in Gold, this year, has been on account of weakness in Dollar Index (DXY) which is just over 101 against a basket of six major currencies. The gold price movement is inversely related to the movement in DXY.  

Internationally, Gold price could hit USD 2,000, Gupta said.

Meanwhile, Silver futures have appreciated by 4.17 per cent during this period. Silver futures are expected to test levels of Rs 74,000 per kg by March, Gupta said. Price target on CME is USD 26, he further said.  

Intraday Trading Strategy

Gupta recommends a buy on April Gold Futures at Rs 58,500 with a stop loss of Rs 58,000 and price target of Rs 59,300. As for Silver futures, buying is suggested at a price of Rs 71,000 with a stop loss of Rs 70,000 and target of Rs 73,000.

April Gold futures were trading at Rs 58,711 around 7 pm, up by Rs 826 or 1.43 per cent while March Silver futures were trading at Rs 72,169, up by Rs 2328 or 3.33 per cent from the Wednesday closing price.

Source: MCX

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(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)