Strength in US Dollar and weakness in demand for physical gold and silver have put the prices in check. Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL expects the trends to continue in the near term, recommending a sell strategy in Gold and Silver futures. 

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On Tuesday, both Gold and Silver futures were trading with a negative bias on MCX around 1:30 pm. While the former was down by Rs 154 per 10 gram, the latter became cheaper by Rs 291.     

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MCX Gold Trading Strategy      

MCX August Gold Futures were trading at Rs 46,854 per 10 gm around this time, getting cheaper by Rs 154 or almost 0.3 per cent from the last closing price on Monday. His strategy for today is to Sell at Rs 47,000. He puts the stop loss at Rs 47,250. He puts the target price at Rs 46,600.     

MCX Silver Trading Strategy  

Meanwhile, MCX September Silver Futures were trading at Rs 68,942 per kg on Tuesday around this time, down by Rs 291 or 0.4 per cent from the last closing price. He recommended selling at Rs 69,000. He puts the stop loss at Rs 69,700 while the target price at Rs 68,000. 

Gupta, however, said that the existing weakness is a good investment opportunity for long term investors. Gupta said that the MCX Gold Futures have become 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 47,500 per 10 gram while that of silver is Rs 68,000, Gupta said. In Noida jewellery markets, the prices are more or less similar, the VP said.      

He expects more correction in the international prices, going forward, but that could have limited impact because of strengthening US Dollar leading higher exchange rates.     

Gold futures on Wednesday were trading around USD 1775 while Silver futures were trading around USD 25.90. He expects Gold Futures to test levels around USD 1740 while Silver Futures to test levels around USD 25.98 within a fortnight if the negative sentiments continue. 

As for prices in Dubai, 24k Gold was trading at AED 215 (4,347.45 Indian Rupee) per gram while 22k was trading at AED 201.75 (4,079.52 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).