Gold Price Today: Yellow metal to gain amid Dollar weakness; Buy MCX Gold, Silver futures, says analyst

Gold Price Today: Even as equity, currency and commodity markets are shut for trading today on account of Guru Nanak Jayanti, MCX will resume trading in the evening session which starts at 5 pm. On Monday, December Gold futures closed with marginal gains at Rs 50,925 per 10 grams — a rise of Rs 59 or 0.12 per cent from the Friday closing price. Meanwhile, December Silver futures settled at Rs 60,855 per kg, up by Rs 317 or 0.52 per cent.

In the absence of major local triggers, bullion is unlikely to see big movement, commodity and currency expert Anuj Gupta said.

However, the bias is expected to remain positive over the trading session amid relatively weaker Dollar Index (DXY) coupled with a strong local demand, Gupta added.

The US Dollar is off from highs of previous weeks and the Dollar Index is currently hovering around 110, down from the highs of 115 against the basket of major currencies.

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 The IIFL Securities analyst said that Gold futures have gained 1.5 per cent in this month while Silver futures have appreciated by 5 per cent.

The Vice President (VP), Commodity and Currency Research at IIFL Securities sees a positive outlook over the near-term period and recommends a buy strategy on gold and silver.

Investors can look to buy December Gold futures at Rs 50,700 with a stop loss of Rs 50,450 and price target of Rs 51,200. Buying is suggested in December Silver futures, as well, at Rs 60,000 with a stop loss of Rs 59,400 and price target of Rs 61,000.

A benign Dollar is good for the prospects of gold and silver as the prices are inversely related.

The ongoing weakness is on the back of China selling Dollar to strengthen Yuan, this analyst said.

He is of the view that if China continues selling in the greenback, many other countries, in order to strengthen their currencies, could follow suit. This will potentially take away some strength from the US Dollar, he opined.

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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.)