Gold Price Today: Weaker Rupee to hold yellow metal slide domestically, amid strengthening Dollar; analyst suggests strategy

A lackluster show was on display in bullion market on Thursday and both Gold and Silver futures were trading nearly flat, albeit with some negative bias on MCX. At 2:30 pm, the August Gold futures were trading at Rs 50707 per 10 gram and were down by Rs 22 from the Wednesday closing price. Meanwhile, the September Silver futures were trading at Rs 59767 per kg and were lower by Rs 24 from the previous closing level.

Expert Anuj Gupta recommends a buy strategy for MCX August Gold Futures for the intraday traders at Rs 50500 with a stop loss of Rs 50250 and price target of Rs 50900. The technical analyst sees support at Rs 50400 (USD 1805)-50100 (USD 1790) while the resistance at Rs 51000 (USD 1835)-51400 (USD 1855).

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As for September Silver futures, buying is recommended at Rs 59500 with as stop loss of Rs 58800 and price target of Rs 60500. As for September Silver futures, buying is recommended at Rs 59500 with as stop loss of Rs 58800 and price target of Rs 60500. He sees support at Rs 58800-57500 while resistance at Rs 60000- 61000.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities said that the weakness in Rupee against the green has kept the yellow metal slide, in check, in India. The trend is likley to continue, he said adding that the INR could test levels around 81 in the July series.  

In the physical markets in the Delhi-NCR region, price of 10 gram gold is Rs 51000 while that silver is available at price near Rs 60500, Gupta said

Another analyst Pritam Patnaik expects Gold t trade in a range bound manner owing to positive and negative factors playing on the metal's price outlook. "A breach below USD 1815 could send the metal towards USD 1805 and if this level too is taken out, USD 1800-1790 will be on the cards," the Head of Commodities, HNI and NRI Acquisitions at Axis Securities said. 

Gold prices could not hold on to the upswing towards USD 1835 witnessed in Wednesday’s trade, Patnaik said. At (-) 1.6 per cent, the US GDP shrunk higher than street expectations of (-) 1.5 per cent, confirming the growth slowdown and recession fears, he added. This helped gold prices jump, but only momentarily, he further said.

"The yellow metal went on to drop to its lowest levels in the last two weeks as central bankers remained firm in their resolve to battle inflation using rate hikes, even at the cost of short-term economic slowdown. The Fed Chairman yesterday repeated his latest pledge to battle inflation with readiness to announce another 0.75 per cent rate hike if needed," the Axis Securities expert said.

Gold was mostly quiet on Thursday, but faced its worst quarter since early 2021 as a remarkable showing from the dollar kept investors away, with bullion`s outlook clouded by top central banks adopting aggressive tactics to fight stubborn inflation, a Reuters report said.

Gold prices, set to drop for a third straight month, have fallen about 6.4 per cent this quarter, the report further said.

(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.)