Today’s gold price: MCX Gold and Silver ended with gains on Wednesday. The June gold futures settled at Rs 50795 per 10 grams and rose by Rs 209 or 0.41 per cent from Tuesday’s close. Meanwhile, July Silver Futures Day ended at Rs 60,790 per kg, up Rs 172 or 0.3 per cent from the previous close.
Trading on MCX will resume on Thursday at 9am.
Commodity expert Anuj Gupta suggested selling MCX Gold Futures at Rs 50,800 in June with a stop loss of Rs 51,150 and a target of Rs 50,000.
As for the July MCX Silver Futures, he suggested selling at Rs 61,100 with a stop loss of Rs 61,800 and a target price of Rs 59,800.
Gupta, who is also the Vice President (VP) of IIFL Securities, Commodity and Currency Research, expects gold to weaken in the near term after US CPI data showed a modest inflation in April.
Gold is considered a haven for investment in times of uncertainty.
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Gold rose as the dollar and treasury yields fell on Thursday, after US consumer price data suggested inflation had peaked in April, easing some concerns about a more aggressive US Federal Reserve rate hike, Reuters reported.
The yellow metal resumed its ascent on Wednesday after a knee-jerk reversal tied to the release of US inflation data, as the dollar depreciated as investors’ consumer prices cooled slightly, another report said.
Gupta said ongoing geopolitical tensions would keep commodity prices at bay and strengthen the US dollar against the Indian rupee and other currencies.
He said a strong dollar is not good for bullion. However, a weaker rupee could potentially make imports more expensive for domestic use.
He said the price of 24 carat gold in Delhi is around Rs 51,800 and 22 carat gold is around Rs 51,000. Meanwhile, silver is available at around Rs 63,500.
(Disclaimer: The opinions / suggestions / suggestions published here in this article are by investment experts only. Zee Business advises its readers to consult their investment advisors before making any financial decisions.)