Gold Price Today: Outlook remains weak in near term, expert suggests Sell in MCX Gold, Silver futures

Gold Price Today: MCX Gold and Silver ended with gains on Wednesday. The June Gold Futures settled at Rs 50795 per 10 gram and was up by Rs 209 or 0.41 per cent from the Tuesday closing price. Meanwhile, July Silver futures ended the day at Rs 60790 per kg, gaining Rs 172 or 0.3 per cent from the previous closing price.

Trading will resume on the MCX from 9 am on Thursday.

Commodity expert Anuj Gupta suggests selling in June MCX Gold futures at Rs 50800 with a stop loss at Rs 51150 and target at Rs 50000.

As for July MCX Silver futures, he recommends selling at Rs 61100 with a stop loss of Rs 61800 and target price of Rs 59800.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities expects weakness in gold in the near term after US CPI data showed a benign inflation in April.

Gold is considered a haven for investment at times of uncertainties.   

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On Thursday, Gold gained as the dollar and Treasury yields slipped after U.S. consumer price data suggested inflation might have peaked in April, allaying some concerns of more aggressive US Federal Reserve rate hikes, Reuters reported.

The yellow metal resumed its climb on Wednesday after a knee-jerk retreat tied to the release of US inflation data, as the dollar slipped with investors latching on to a slight cooling of consumer prices, another report said.

Gupta said that the ongoing geo-political tension will keep commodity prices on the edge and strengthen the USD against the Indian Rupee and other currencies.

A stronger Dollar does not augur well for bullion he said. However, a weaker Rupee could potentially make imports costly for domestic consumption.

He said that price of 24 Carat Gold in Delhi is around Rs 51,800 and price of 22 Carat gold is around 51000. Meanwhile, Silver is available around Rs 63500.     

(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.)