Gold price today witnessed some profit booking as the spot gold price in the international market touched around $1,708 per ounce while in the domestic future commodity market, the rate is Rs 45,735 per 10 gm. However, according to gold experts, gold price outlook is still bullish and the slide in the gold price is only due to the weekend profit-booking in the precious yellow metal. Commodity experts are of the opinion that gold price in the international markets is expected to hit $1,840 to $2,200 per ounce in medium to long-term and in the domestic market, we can witness Rs 52,000 per 10 gm to Rs 58,000 per 10 gm gold price in medium to long-term. 

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Having said that, investors should also know that the rise and rise in gold prices may also generate a reaction from central banks. Experts are also maintaining that in the case of further rise in gold price, Reserve Bank of India and other countries' Central Banks may start taking measures to keep it under check. To contain gold price from rising further, Central Bank Gold Agreement may come into play and the various central banks may decide to sell their gold reserves after having a mutual agreement with the IMF.

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Speaking on the gold price in international market, Sugandha Sachdeva, Vice President at Religare Commodities said, "Gold price in international market is having strong support at 1,670 per ounce. It has strong resistance at 1,780 but once it breaks this resistance, we can witness gold price in the international market at $1,840 per ounce." 

On being asked to express these numbers in Multi Commodity Exchange or MCX gold price pattern Sachdeva said, "Currently, the gold price MCX has support at 44,600 and any dip towards this level should be seen as an opportunity to buy gold because overall the outlook for gold price today is still bullish." She said that gold price is expected to hit around 50,000 per 10 gm in medium-term and much will depend on how the global economy performs against the Coronavirus led slowdown.

Speaking on the gold price in medium to long-term perspective, Anuj Gupta, Deputy Vice President — Commodities and Currency at Angel Broking said, "In global commodity markets, spot gold price is expected to hit $1,780 within one month and if it sustains above this level, then  the next long-time target of Comex gold will be $2,200." Gupta said that in immediate terms, MCX gold price is poised to hit Rs 50,000 to Rs 52,000 but if the gold price in international market sustains above 1,800 per ounce, then the long-term MCX gold price target will be 58,000 per 10 gm."

Asked about the possible steps that may be taken by various Central Banks to keep a check on this precious yellow metal's price, Gupta said, "In case gold price continue to rise on global recession due to Coronavirus, the Central Bank Gold Agreement may come into play and in that case Central Banks of various various countries may make an agreement with the International Monetary Fund (IMF) and sell their gold reserves as they did during the 2008 and 2014 gold rally." 

Warning
Gupta advised gold investors to keep an eye on the various central banks in regard to the gold price rally as their decision to sell gold reserves may lead to massive profit booking.