Gold Price Today: Bullion headed for further correction; Sell MCX Gold, Silver futures, says expert

Gold Price Today: Selling pressure in Gold and silver in the global markets is keeping bullion prices on the edge. The pressure is unrelenting amid expectations of next round of interest rate hikes by the US Federal Reserve and high inflation. 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 Anuj 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.

The impact of weakness in global rates has trickled down in domestic markets as well, though correction in prices of MCX Gold futures has largely been flat during the first three trading sessions, Gupta said.

It is due to the fall in Indian Rupee (INR) against the US Dollar, he reasoned.

Gupta is Vice President (VP), Commodity and Currency Research at IIFL Securities.

On Wednesday, the MCX August Gold Futures ended at RS 50193 per 10 gram and were down nearly 0.3 per cent or by Rs 127 from the Tuesday closing price. His advice to intraday traders is to Sell August Gold futures at Rs 50450 with a stop loss of Rs 50750 and price target of Rs 49700.

As for MCX September Silver futures, the VP recommends selling at Rs 56000 with a stop loss of Rs 56750 and price target of Rs 54700.

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September Silver futures ended at Rs 55573 per kg and were down nearly 0.3 per cent or by Rs 127 from the previous closing price on Tuesday.

Silver futures have corrected by 0.80 per cent over the three-day period, Gupta said. 

Quote from Pritam Patnaik, Head - Commodities, HNI & NRI Acquisitions, Axis Securities

"Gold prices have come under renewed attack as the dollar index tries to retest its recent highs. The investors seem to be nervous about the deluge of impending rate hikes across all major economies, possibly starting with the ECB today, BOE, and finally the US Fed, as they endeavor to reign in runaway inflation, which has been beating historic levels. The gold bulls will have to wait for some more time to start value buying. Prices will remain soft to negative, as all rallies will be possibly sold into.".

(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.)