Gold Price Outlook: What should traders, investors do when Markets REOPEN on Monday? Here is an expert view!

Gold and Silver futures ended positively on Friday in the domestic markets. The prices went up by Rs 300 for MCX Gold Futures while for Silver Futures the prices were up by Rs 1160. What should the traders expect when the markets reopen on Monday? Should they buy or sell gold and silver futures? What should the investors do now? If these questions are worrying you, then Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities has the answers.

Weakness in Gold and Gold prices is expected to continue over the next week, Gupta said adding that price movements will be in a rangebound manner. The August Gold Futures are expected to trade in the range between Rs 47,300 and Rs 46,600. Meanwhile, MCX September Silver Futures are expected trade in the range between Rs 71,000 and Rs 68,000.

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MCX Gold Trading Strategy        

MCX August Gold Futures ended at Rs 47,339 per 10 gm around on Friday, getting expensive by Rs 300 or 0.64 per cent from the last closing price on Thursday. His strategy for Monday is to Sell at Rs 47,300. He puts the stop loss at Rs 47,600. He puts the target price at Rs 46,600.       

MCX Silver Trading Strategy    

Meanwhile, MCX September Silver Futures were trading at Rs 70,280 per kg on Friday at the closing time, up by Rs 1160 or 1.68 per cent from the last closing price. He recommended selling at Rs 70,500. He puts the stop loss at Rs 71,000 while the target price at Rs 68,500.   

The yellow metal is showing weakness because of the strength in US Dollar and hopes of global economic recovery. Gupta said that there was a favourable news on the US job front which may further impact price movement when markets reopen on Monday. US job growth accelerated in June as nonfarm payrolls increased by 850,000 jobs after rising by 583,000 in May, although the unemployment rate rose to 5.9 per cent from 5.8 per cent the previous month, Reuters reported.

Gold futures were trading around USD 1786 while Silver futures were trading around USD 26.30 on Friday.

Strategy for Investors - Gupta, however, said that the existing weakness is a good investment opportunity for long term investors. Gupta had said that the MCX Gold Futures became 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 over Rs 2300 per 10 gram while Silver Futures prices by Rs 4000 per kg.      

In Delhi physical markets, the price of physical gold has come down to Rs 47000, per 10 gram while that of silver is Rs 69,000, Gupta said.   

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

As for prices in Dubai, 24k Gold was trading at AED 216.50 (4,406.21 Indian Rupee) per gram while 22k was trading at AED 203.25 (4,340.07 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).