Gold price may test Rs 51,000-mark as near term outlook still positive, says expert

Outlook for gold and silver remains positive in near term and both these metals may see a further uptick in prices from here, Senior Technical Analyst Anuj Gupta said. The Deputy Vice President, Commodity and Currency Research at Angel Broking said weakening dollar and tensions brewing between US and China may strengthen precious metals

At 7 pm, MCX August Gold futures were trading around Rs 50,428, up by almost 0.7 per cent from the Wednesday close. The intraday high for the precious metal was Rs 50707. Source: Reuters

The outlook for gold and silver remains positive in the near term and both these metals may see a further uptick in prices from here, Senior Technical Analyst Anuj Gupta said. Gupta, who is a Deputy Vice President, Commodity and Currency Research at Angel Broking said that the weakening dollar and tensions brewing between the top two most powerful economies of the US and China may further strengthen the position of these precious metals.

As this week’s trading ends tomorrow, Gold may test levels around Rs 51000, this analyst said.

At 7 pm, MCX August Gold futures were trading around Rs 50,428, up by almost 0.7 per cent from the Wednesday close. The intraday high for the precious metal was Rs 50707.

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As for MCX Silver, the levels around Rs 63000 by early next week were very much in sight, he further said. Today, the September Silver Futures on MCX were down by 0.5 per cent around this time. They were trading at Rs 60800 per 1 kg. The intraday high was Rs 62400.

Spot price of Standard gold was Rs 50500 while for pure Gold it was Rs 50703, PTI reported. Silver spot today closed at Rs 60785.

On likely triggers, Gupta said that the weakness in dollar is further firming up the prices of bullion. Moreover, treasury yields in US dipping on Monday is another reason why the precious metals are gaining he added. As cases of the coronavirus in the US continued to rise and fiscal stimulus shores up economies, gold and silver will further become strong.

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He said that as festive season approaches, demand for silver may grow significantly. It is one of the most popular investment instrument in rural India. Gold is becoming expensive by the day, and this works for silver as affordability will play on investors’ minds, he added.

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