Gold Price Today – Gold, Silver recover after Tuesday fall; Open with gap; expert tells what investors should do now

MCX gold and silver today opened in the green after falling by more than Rs 900 on Tuesday. On Wednesday, while Gold was up Rs 122, silver was up by more than Rs 1000. What should the investors do now? Should they invest in gold or wait? What is the trend for bullion? Expert Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking explains.

Anuj Gupta said that the price of Gold has corrected further by almost Rs 500 in the physical markets, though the silver price in physical market has remained intact. The price of spot Gold is Rs 49,000. The spot price of Silver is Rs 71,000.  

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Tuesday saw major correction in both Silver and Gold prices on MCX.

US President Joe Biden’s proposed USD 1.9 trillion COVID-19 aid bill arrested the slipping in bullion due to the strengthening dollar and higher US yields.

In India the Gold prices corrected for two consecutive days after the Government announced slashing in the customs duty in the Budget 2021 on 1 February.   

The Budget 2021 announcement by Finance Minister Nirmala Sitharaman slashing the import duty on Gold and Silver has started reflecting in the jewellery markets, Expert Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking said. He said that impact has been immediate as Gold prices have dropped significantly despite the price in international market holding up. He said that it is the right time to invest in Gold and Silver. 

See Gold, Silver Price strategy

The Senior Technical Analyst still recommended a Buy on Silver and Gold. At 9:05 am, the MCX April Gold Futures were trading at Rs 47,947 per 10 gm, up by RS 122 or 0.3 per cent. The Gold futures should be bought at Rs 47,500. He puts the stop loss at Rs 47,200 while the target price at Rs 48,500.

Meanwhile, the MCX March Silver futures were trading at Rs 68,577 per kg around this time, up by almost Rs 1036 or 1.5 per cent. He recommended a buy in silver too.    

Why to buy Gold, Silver NOW? 

While the slashing of duty is a welcome change and would bring down the prices significantly, the best time to buy gold and silver is now, the Senior Technical Analyst opined. He said as the international prices are expected to hold firm and may even appreciate, so the slashing of duty may not translate into gains if not purchased now. 

The significant change in price has been on the back of budget announcement.