Gold Price Today 2-03-2021 – MCX Gold cheaper by Rs 400 on Tuesday morning, Silver expensive by Rs 69; BUY or SELL?

Weakness in Gold prices continued on Tuesday as the Gold Futures fell by almost Rs 400 or 0.9 per cent minutes after the markets opened. Meanwhile, Silver Futures were trading almost flat around this time. There was marginal increase of Rs 69 around this time. Expert Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking gives complete outlook and investment strategy in Gold and Silver. He also tells investors about the spot price of Gold and Silver in Delhi Markets.

 The strength in US Dollar (USD) is bringing down the price of Gold and Silver in international markets.  Gold and USD have an inverse relationship and when one goes down the other benefits. While the price of Gold and Silver is coming down, the strength in USD is neutralising the gains and making it expensive for other currencies.

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The prices of Gold and Silver would have come down further for consumers in India if the USD had not become stronger. USD has appreciated quite strongly last week and is expected to gain this week too. This could negate the advantage of falling international price of Gold and Silver, for consumers back home in India.

Gupta said that the Dollar index has increased from 89.67 to 91.21 over a week period.   

Among other reasons, the rise in US Bond Yields is also taking some shine off the bullion, the Senior Technical Analyst said. He said there is a possibility that the outlook may remain subdued in the near term.  

He had also said that the delay around US Coronavirus stimulus is another reason for ongoing strength.

MCX Gold, Silver trading strategy

At 9:03 am on Tuesday, MCX April Gold Futures were trading down by Rs 407 or 0.9 per cent. The Gold Futures were trading at Rs 45,329 per 10 gm. His strategy is Sell Gold Futures at Rs 45,500. He puts the stop loss at Rs 45,800 while the target price at Rs 44,800.

Meanwhile, MCX May Silver futures were trading at Rs 68,853 per kg around this time, gaining by Rs 69 or 0.10 per cent. He recommended Selling in Silver Futures at Rs 69,000. He puts the stop loss at Rs 69,700 while the target price at Rs 67,000.

International Gold Spot price

The international spot price of gold is USD 1707 which was down from the last reporting price of USD 1747 on Monday. The near term outlook remains negative as the prices could come down to USD 1700 internationally, Gupta said. He said that there is a support zone between USD 1680 and US 1700.

International Spot price of Silver

The international spot price of Silver is also down from USD 26.94 to USD 26.03. The near term outlook remains negative as the prices could come down to USD 26 internationally, Gupta said.

Gold, Silver Spot price in Delhi

The spot price of Gold in Delhi is around Rs 46,200, which is Rs down from Rs 47,000 over the 3-4 days. The spot price of silver is RS 69,500, which is also down by Rs 500 during this period.