Gold and Silver futures opened in the red on Monday as weakness in bullion continued in the third straight week. Amid strengthening US Dollar and the latest CPI inflation numbers, both Gold and Silver were on a weaker trajectory. Long-term investors planning to buy physical gold and silver have news to cheer about. There is a buying opportunity as the lower prices have started reflecting in the physical markets as well.

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Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities has earlier asked the investors to wait and get in touch with their local jewellers to get the best deals. Gupta said that the prices in the physical markets start reflecting in 1-2 days. He said that in physical markets, the price movements are slower than one sees on exchanges.

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He expects this weakness to continue over this week which means that the prices could go down further. His strategy for traders is to sell.

On Monday, MCX August Gold futures were trading in the red around 12:15 pm, falling by Rs 428 while the MCX Silver Futures were also down by almost Rs 500.

In the physical markets in Delhi, Gold was trading at Rs 50,000, cheaper by around Rs 500 while Silver was trading around Rs 72,500, Gupta said. He said that the Gold and Silver prices in Noida are also similar to those in Delhi.
 
As for prices in Dubai, 24k Gold was trading at AED 226 (4,502.60 Indian Rupee) per gram while 22k was trading at AED 212.25 (44,228.57 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).  
 
Internationally, the spot prices of Gold and Silver saw correction with Gold hovering around USD 1867 and silver at USD 27.60. He said that the weakness may continue in the near term in the wake of strengthening dollar.

Expect some more profit booking in Gold and Silver over the next week, Gupta said.

MCX Gold, Silver Trading strategy  
   
MCX August Gold Futures were trading at Rs 48,475 per 10 gm, getting cheaper by Rs 428 or almost 0.9 per cent from the last closing price on Friday. Gupta recommended a Sell on August Gold Futures at Rs 48,900. He puts the stop loss at Rs 49,100 while the target price at Rs 48,400.  
   
Meanwhile, MCX July Silver Futures were trading at Rs 71,729 per kg around this time on Monday, down by Rs 498 or 0.7 per cent from the last closing price on Friday. He recommended a Sell in Silver futures at Rs 71,800. He puts the stop loss at Rs 72,300 while the target price at Rs 70,500.  
   
Outlook Positive in near to medium term  
   
The senior technical analyst says that the outlook remains positive in the medium term. He expects it to test levels around USD 1940 in the positional medium term period. As for Silver, he expected it to reach levels around USD 30 withing the same time.