Gold Price Outlook: Yellow metal to touch $1,320 per ounce by July end, say COMEX experts

COMEX Gold outlook shows some bullishness caused by the rise in demand for gold and escalating geopolitical tension between US-Iran and US-China, say commodity experts.

MCX Gold may show Rs 34,000 per 10 gm levels by Deepawali if the Sino-US trade war doesn't ease in the next few months if not week, say experts. Photo: Reuters

Gold future price at COMEX is expected to go up on rising in demand and escalating geopolitical tension, especially between US-China and US-Iran. COMEX experts say there is huge uncertainty in the global markets after the escalating trade spat between China and the US and sanctions on Iran imports imposed by the US has further fuelled the geopolitical set-up that is going to have its toll on the domestic currencies of the emerging nations. As per the commodity market experts, these factors would fule the gold price and COMEX Gold may touch $1,320/ounce by end of July. In MCX perspective, the MCX Gold may show Rs 33,000 in this period and by the end of Deepawali, there can be some more upsides as the World Gold Council (WGC) has announced a rise in demand in the yellow metal. By end of Deepawali, gold prices may show Rs 34,000 per 10 gms, MCX Gold say experts.

Speaking on the COMEX Gold outlook Anuj Gupta, Deputy Vice President — Currency and Commodity at Angel Broking said, "In COMEX, gold has strong support at $1,280 and has some upside swing caused by the geopolitical tension between US-Iran and the US-China." Gupta said that these global factors have put observers of the global merchandise in limbo, which would put pressure on the local currencies like rupee in India and Yuan in China. Since gold consumption is expected to go high and supply chain is under stress, the prices of gold are expected to go up and in next two months or by end of July, we can see the gold price in the range of $1,320/ounce to $1,340/ounce levels in the global commodity market.

Speaking in terms of MCX Gold Anuj Gupta of Angel Broking said, "In domestic Indian future market, gold may show Rs 33,000 in next two months. However, the way WGC has said about rising in gold demand, we can see the MCX Gold at Rs 34,000 per 10 gms by Deepawali."

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Giving a word of caution to the Gold investors Sugandha Sachdeva, Vice President at Religare Commodities said, "There is some buying interest into COMEX Gold because of the China-US trade war but people should keep in mind that both the nations are working hard to keep things under control and even a reconciliatory note has been released by the Chinese administration. So, it may happen that the Sino-US trade war gets eased in the coming days. In such a scenario, the COMEX Gold may not go beyond $1,310/ounce levels taking support at around $1,265/ounce to $1,270/ounce levels."

In terms of MCX Gold Sugandha Sachdeva of Religare Commodities said, "At MCX, gold is facing strong resistance at Rs 32,500 levels and its support is Rs 31,350 to Rs 31,400 per 10 gms level. Much of the MCX Gold outlook depends on breakage of either range of the gold price." So, as per the experts, developments in Sino-US trade talks hold key for the COMEX Gold and MCX Gold outlook.

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