As gold price crashes over 10 pct, silver nearly 20 pct, experts shine a light into future

Gold price in the last two trade sessions has crashed around 10 per cent to Rs 51,579 per 10 gm while silver price nosedived nearly 20 per cent to Rs 65,633 per kg at the Multi Commodity Exchange (MCX).

Experts say that that gold price in the domestic market may hit Rs 58,000 per 10 gm mark in one month's time after the consolidation. Photo: PTI

Gold price in the last two trade sessions has crashed around 10 per cent to Rs 51,579 per 10 gm while silver price nosedived nearly 20 per cent to Rs 65,633 per kg at the Multi Commodity Exchange (MCX). According to the commodity experts, the yellow metal has strong support at $1,865 per ounce to $1,880 per ounce levels and if the consolidation happens then there can be fresh rally expected in both gold and silver but with 'limited speed.'

Speaking on the gold price outlook, Amit Sajeja, Associate Vice President at Motilal Oswal said, "Gold price at Rs 55,000 per 10 gm was not advisable for fresh position and correction in the yellow metal was expected. But, in the international markets, it has sustained above $1,865 per ounce mark and some recovery in the gold price across the world is now visible. This reflects about fresh consolidation and once it consolidates above $1,865 per ounce levels, we can witness a fresh rally in the gold price but not at that speed that we witnessed in the last fortnight."

Sajeja said that gold price in the domestic market may hit Rs 58,000 per 10 gm mark in one month's time after the consolidation.

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On why the gold price won't witness that 'sweet spot' in the commodity market any more, Anuj Gupta, Deputy Vice President at Angel Broking said, "There was complete mismatch between the spot gold and future gold price. The retail physical market was not ready to digest such a rise in gold price, especially when the festival of Deepawali is not too far. So, this correction has to be seen as a balancing act of the market."

Gupta said that till Deepawali, gold price is expected to trade in a broader range of $1,820 to $1,940 per ounce. However, he maintained that all the reasons for the rise in gold and silver price still exist and the overall outlook for bullion is still bullish.

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