Gold Price Today: Book profits to capitalise on Thursday's bounceback, says analyst; outlook remains weak

Gold Price Today: Gold prices bounced back on Monday after the European Central Bank announced a 50 bps rate hike on Thursday to tame inflation. This triggered a rally in Euro taking some strength from the Dollar Index (DXY). A weaker US Dollar helped the yellow metal bounce back, commodity expert Anuj Guta said.

Selling pressure in Gold and silver in the global markets is keeping bullion prices on the edge. The pressure is likely to continue in the near to immediate term, Gupta said. The price of Gold has fallen by 0.9 per cent in the international market between Monday and Wednesday trading sessions this week, commodity expert Gupta said. Meanwhile, silver prices have declined by 1.20 per cent during this period, he added.

The strength in Dollar Index (DXY) is impacting its safe haven appeal despite fears of economic slowdown and geo-political tensions, Gupta said. Gold is expected to remain on edge as investors are keenly watching the US Federal Reserve meeting scheduled on 25-26 July.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities recommends a Sell on MCX Gold and Silver Futures. Prices of Gold and Silver futures rebounded in the evening session and this opportunity should now be used to book profits, the VP said.

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On Thursday, the MCX August Gold Futures ended at Rs 50431 per 10 gram and were up nearly 0.4 per cent or by Rs 206 from the Wednesday closing price. His advice to intraday traders is to Sell August Gold futures at Rs 50700 with a stop loss of Rs 51050 and price target of Rs 50200. He sees support in August Gold futures at Rs 50000-49600 while resistance at Rs 50700-51000.

Today, MCX Gold futures opened almost flat, albeit with a negative bias. The yello metal futures were trading at Rs 50363 and were down by Rs 12 from the last closing price.

Meanwhile, MCX Silver Futures were trading at Rs 55277 per kg at 9:36 am and were down by 0.24 per cent or Rs 134 from the Thursday closing price. Silver futures ended at Rs 55440 on the previous day and were up by Rs 179 or 0.32 per cent.

Selling is advised in MCX Silver futures at RS 56000 with a stop loss of Rs 56750 and target of Rs 54700, Gupta said. Support is seen at Rs 55000 and 54400 while resistance at Rs 56100-56800, he added.

(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.)