Gold price today plunged after making a Rs 2,000 rally over the last one week. It dipped around 0.4 per cent in the intraday trade and touched the Rs 47,225-mark. According to commodity experts, this correction is due to profit-booking triggered by the oncoming weekend. They said that the outlook for this precious metal is still bullish and suggested to buy the bullion after around $15 to $20 per ounce correction. In Multi Commodity Exchange (MCX), they predicted a further fall up to Rs 46,500 per 10 gm levels but maintained a 'buy on dips' strategy as the metal price has not topped out yet.

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Highlighting the triggers that are suporting gold’s positive bias Sugandha Sachdeva, Vice President at Religare Broking Ltd. said, "Gold prices have rallied more Rs 2000 per 10 gm at MCX in the last one week and some profit-booking was expected. In fact, it may witness dips up to Rs 46,500 per 10 gm. But, the outlook for gold prices is still positive, because of an array of factors- be it the grim US economic outlook for the year, low interest rates environment and the second wave of Coronavirus infections hitting various economies, which is still favouring rise in gold prices.”Sachdeva suggested gold investors to buy on some declines around Rs 46,500 per 10 gm levels maintaining the stop loss at Rs 46,000 per 10 gm levels for the target of Rs 47,400 per 10gm. She also said that MCX gold prices on the higher side have a strong resistance at Rs 47,700 per 10 gm levels and only a closing above the same would lead to the next leg of upside.

Sachdeva suggested gold investors to buy on some declines around Rs 46,500 per 10 gm levels maintaining the stop loss at Rs 46,000 per 10 gm levels for the target of Rs 47,400 per 10gm. She also said that MCX gold prices on the higher side have a strong resistance at Rs 47,700 per 10 gm levels and only a closing above the same would lead to the next leg of upside.

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Sachdeva suggested gold investors buy at around Rs 46,500 levels and maintain the stop loss at Rs 46,100 for a target of Rs 47,400. She also said that MCX gold price is facing resistance at Rs 47,700.

On his outlook for gold price in next fortnight, Amit Sajeja, Associate Vice President at Motilal Oswal said, "Outlook for gold is still positive. This correction in gold price is because of the huge rally witnessed in the yellow metal in the last one week. I would advise investors to maintain buy-on-dips strategy. They should buy again after it falls for around $15 to $20 per ounce in the international markets." 

Talking about the yellow metal rates in MCX terms, Sajeja said that in the coming fortnight, one can witness the gold prices in the international market breaking the $1750 per ounce hurdle as expectations of a second wave of Coronavirus is already showing its impact on equity markets, which is good for the gold price. 

Sajeja said that gold price at MCX may touch Rs 48,200 levels in the coming fortnight.