Gold Price Today: Book Profits On MCX Gold Futures As Trend Remains Negative, Experts Say

The outlook for MCX Gold futures is rather negative, at least two analysts told Zeebiz Web Team. Commodity expert Anuj Gupta has recommended a short strategy for this week. On Monday, August MCX gold futures closed at R50341 per 10 grams and rose nearly 0.5% or Rs234 from Friday’s closing price.

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On Tuesday, gold was trading at Rs 50,269, down Rs 92 or 0.2% from Monday’s closing price. The technical analyst recommends Sell on August Gold futures at Rs 50550 with a stop loss of Rs 50750 and a target of Rs 50100.

Selling is suggested in September silver futures at Rs 56,500 with a stop loss at Rs 57,250 and a price target at Rs 55,500, Gupta added.

Gupta is Vice President (VP), Commodities and Currency Research at IIFL Securities.

Expect the market to continue to be negative, says Pritam Patnaik of Axis Securities. He is Head – Commodities, HNI & NRI Acquisitions.

“The triple impact of an impending US interest rate hike from 0.75% to 1%, a strong dollar and higher bond yields undermined any potential positivity from gold bulls. The Brief Yesterday’s move in gold sold off aggressively, showing the lack of confidence the asset class enjoys among traders and investors,” he said.

“It’s a fact that gold is technically in oversold territory, but with the upcoming U.S. Fed rate decision in the coming days, no traders are ready for exposure. Fund managers and retail investors appear to be reducing their long positions, with data from the CFTC and gold fund SPDR indicating the unwinding of long positions and cash outflows,” the expert said.

Also Read: Gold Price Today: Negative Outlook For This Week, Expert Says; suggests an intraday strategy
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(Disclaimer: Opinions/suggestions/advice expressed here in this article are investment experts only. Zee Business suggests its readers consult their investment advisors before making any financial decisions.)