Gold Price Today: Gold prices remained under pressure throughout the week, due to a rising dollar index and speculation about a US Fed rate hike at the upcoming FOMC meeting. Gold rates on the Multi Commodity Exchange (MCX) closed at ₹ 50,280 per 10 grams on Friday. In intraday trade yesterday, the price of gold had broken around ₹ 600 per 10 grams. Whereas on a weekly basis, MCX gold recorded a loss of ₹ 1,719 per 10 grams or Rs 3.30. In the spot market, gold prices on Friday declined by 1.33 percent to end at $1,643 an ounce.
Silver affordable up to Rs 3000
According to IBJA, gold fell from Rs 51120 to Rs 50438 in the last one week in the bullion market. That is, the price of gold has fallen by Rs 682 in five days. At the same time, the price of one kg of silver (silver price today) has broken by about Rs 3000 in a week. During this, silver fell from Rs 58949 to Rs 56042 per kg. That is, silver has become cheaper by Rs 2907 this week.
Why is gold falling?
According to commodity market experts, the major reason for the fall in gold prices this week is the rise in the dollar index. However, the US CPI data brought some relief rally in the yellow metals price. Experts say that due to the feeling of panic in relation to the US dollar, people are swapping gold for dollars. He further said gold prices are expected to remain down on the back of a stronger US dollar and may trade in the range of $1,640 to $1,700 an ounce. If there is a break above the level of $1,640, the spot gold price may go towards the level of $1,600. On MCX, till Diwali, the price of gold is expected to remain in the range of Rs 50,200 to Rs 51,500.
This will be the rate on Diwali
When asked about gold prices till Diwali, experts said the yellow metal is expected to remain low. On breaking the 50,200 level on MCX, gold can go up to Rs 49,300, while in the spot market, the next support below $ 1640 is placed at $1,600.
Amit Sajeja of Motilal Oswal said, “Gold price is expected to remain range bound till Diwali 2022 and high risk traders can buy gold at around $1,640 level in spot market. Gold price on MCX is ₹51,300 to ₹51,300 till Diwali. 51,500 per 10 grams.”
Recommending ‘Buy on Dips’ strategy ahead of Diwali 2022, Anuj Gupta of IIFL Securities said, “Spot gold price is trading above its support level of $1,640. On breaking this level, it will trade around $1600. per ounce level. Hence, high risk investors can buy above the level of $1640. But, they need to maintain the stop loss below the level of $1640. On MCX, one can also buy above the level of $1,640. One can buy gold if it opens further above 50,200 levels. From the current levels, it may go up to 51,500 levels by Diwali 2022. However, if the yellow metal opens below the current levels, buyers are advised. They want to buy around 49,500 to ₹49,300 level while maintaining stop loss at ₹48,800 level.”