Gold Futures on Wednesday were trading with a slightly positive bias at 12:30 pm appreciating by Rs 50 while Silver Futures were trading in a negative zone around this time falling bu over Rs 350. The domestic prices took cues from the international trends in the absense of any major domestic indicators Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said.

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The international spot prices of Gold and Silver have seen some correction today he said. Gold was trading at US 1898 while the silver prices were hovering around USD 27.80. His target on Gold and Silver prices remains intact with Gold expected to touch levels around US 1930 while Silver is staring at levels around USD 30. 

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Gold prices dipped on Wednesday, as elevated Treasury yields and an uptick in risk appetite weighed on the safe-haven metal, while investors awaited US jobs data due this week for cues on economic recovery and near-term Federal Reserve policy action, Reuters reported.

Gupta expects some profit booking in Gold and Silver futures on an intraday basis.

MCX Gold, Silver Trading strategy – MCX August Gold Futures were trading at Rs 49,475 per 10 gm around this time, getting expensive by almost Rs 50 from the last closing price on Tuesday. Gupta recommended a Buy on Gold Futures at Rs 49,400. He puts the stop loss at Rs 49,200 while the target price at Rs 49,900.

Meanwhile, MCX July Silver Futures were trading at Rs 71,890 per kg, down by Rs 350 0r 0.5 per cent from the last closing price. He recommended a Buy in Silver at Rs 71,900. He puts the stop loss at Rs 71,200 while the target price at Rs 73,000. In the physical markets in Delhi, Gold was trading at Rs 51,000 while Silver was trading around Rs 73,500.

Gold Vs Silver – Gupta is bullish on both Gold and Silver in the near to medium term. He said that the bullion is set for big gains going down the line. But the real winner for investors has been Silver which has risen by almost 6 per cent since the beginning of January 2021 while the yellow metal is still in the negative from the highs of August 2020, when it hit its peak. 

But over April and May months, Gold has shone brightly gaining by almost 9 per cent while the average increase has been just over 6 per cent for silver during this period. Gupta said that Silver has shown higher volatility, though. 

The overall increase for Gold during the last 2 months has been over Rs 4500, he further said.

However, better days are ahead for Gold and Silver, he reiterated. 

Fragile US economy, geo-political tension, growing coronavirus cases and crypto currency ban in China have all helped to the cause of the bullion over the months of April and May, he further said.