Gold price outlook: Why yellow metal may trade volatile this week? Know key buy zone, sell zone here
Tracking positive global cues, the Gold August Futures rose by nearly Rs 100 per 10 grams in the opening trade on the Multi Commodity Exchange (MCX) on Monday.
Tracking positive global cues, the Gold August Futures rose by nearly Rs 100 per 10 grams in the opening trade on the Multi Commodity Exchange (MCX) on Monday. The surge in the gold prices came after reports of some Western nations planning to officially ban imports of the precious metal from Russia, in view of invasion of Ukraine, surfaced.
After opening at Rs 50730 per 10 grams, the bullion price surged to Rs 50,870 per 10 grams on the MCX in the early trade on Monday.
"The G7 import ban on Russian gold seems to be providing some short-term support in early Asia (trading). However, it is mostly a rubber stamp exercise in reality for the grouping, and I do not expect this to mark a structural change in the supply/demand outlook that will underpin prices," OANDA senior analyst Jeffrey Halley told Reuters.
Amid important global developemnts scheduled this week, the yellow metal is expected to trade with volatility in the next five trading sessions.
Meanwhile, Dr. Ravi Singh, vice President and head of Research, Share india, said gold prices week may show some volatility this week amid important events like G7 summit, US Q1 GDP numbers and OPEC meeting.
"The movement in dollar index may decide the trend of gold prices. Currently, gold may remain in consolidation zone till any major announcement triggers some move," Singh said.
He suggested a buy above 50750 for the target price of Rs 51000, and sell zone was seen below Rs 50500 for the target price of Rs 50300.
As per technical chart Gold and Silver are trading at oversol zone, we can see a good short covering rally in coming future, momentum indicator RSI also indicating the same in hourly as well as daily chart, said Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited
"Traders should focus on important technical levels: For August Gold closing price 50623, Support 1 - 50500, Support 2 - 50300, Resistance 1 - 50800, Resistance 2 – For 51000. July Silver closing price 59749, Support 1 - 59400, Support 2 - 58800, Resistance 1 - 60000, Resistance 2 – 60500," said the Khare.
Gold is seen as a hedge against inflation, but higher interest rates raise the opportunity cost of holding bullion, which yields no interest.
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