How is gold price poised as US elections approach? Check out ETF outlook here!
Global Markets will continue to be volatile as the US elections approach and, amid geo-political uncertainties, this will help Gold price to recover from its recent weakness, Senior Technical Analyst Anuj Gupta said. However, he does expect the precious metal to fall further before seeing an uptick
Global Markets will continue to be volatile as the US elections approach and, amid geo-political uncertainties, this will help Gold price to recover from its recent weakness, Senior Technical Analyst Anuj Gupta said. However, he does expect the precious metal to fall further before seeing an uptick.
MCX October Gold Futures were trading around Rs 49,535 per 10 grams, down by 0.25 per cent on Monday around 11 am. Gupta, who is a Deputy Vice President, Commodity and Currency Research at Angel Broking said that though the MCX Gold will not have a free run, the prices will still rise over this week. He expects the prices to reach around Rs 50,000 by Friday.
The technical analyst said that there could be a buying opportunity at around Rs 49,300, expecting a correction of another Rs 200-250.
As for international Gold, he is eyeing a target of USD 1900. The October Gold Futures on CME were last trading around USD 1854.
Gupta said that MCX December Silver Futures will likely hit the Rs 60,000 mark by the end of this week. The silver futures are currently trading around Rs 58,477 per kg around this time, down by almost 1 per cent.
As for international price outlook for this precious metal, Gupta said that he expected it to trade around USD 24. It is currently trading around USD 22.93.
Gupta said that there could be some weakness in Dollar because of the US elections, softening the price of bullion in the near term.
This presents an opportunity for investors to buy gold and silver.
Gold prices edged up on Monday as the dollar slipped off a two-month peak hit last week as political uncertainty accelerated ahead of the first presidential election debate between U.S. President Donald Trump and his Democratic rival Joe Biden, Reuters reported.
Spot gold was up 0.1 per cent at USD 1,861.13 per ounce by 0503 GMT. US gold futures were steady at USD 1,865.90.
"Gold is going to be driven by the tenor of the U.S. dollar," said Stephen Innes, chief market strategist at AxiCorp. "The big move is going to probably occur after the presidential debate when we have a better read on where the polls are going to be sitting," the report further said.
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The dollar index was down 0.2 per cent against rivals, slightly off a two-month peak hit last week. A firmer dollar makes bullion more expensive for holders of other currencies.
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