Gold Price Slips Against US Dollar, Is It Time to Invest or Need to Wait?

Gold price traded lower in the opening trade on Tuesday as the Dollar Index weakened, leading to rupee appreciation. A weaker dollar makes dollar-priced commodities cheaper, which is bad for bullion prices on the exchanges. However, physical gold prices are expected to come down as a result. The August gold futures on the MCX were trading at Rs 58,638 per 10 gram, down by Rs 51 from the previous close. The September silver futures were trading at Rs 71,387, up by Rs 22. On the Comex, gold futures were trading at $1,933 per troy ounce, up by $2. Silver futures were trading at $23.400, up by $0.055. Read More Business News on our website.

Anuj Gupta, Vice President (VP) of Commodity and Currency Research at IIFL Securities, said that the fall in the Dollar Index is good for gold in the short term and investors can look to buy gold and silver futures now. He also said that the lower import prices will bring down prices of physical gold, but will have a negative impact on futures which trade on the exchanges.

The dollar Index fell to 101.74 as Asian currencies rose against the dollar. The Wall Street rose overnight after FED officials said that interest rates will be required to be raised to bring down inflation. Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP expects the INR to trade in the range of 82.35-82.65 against the USD.

Anuj Gupta, Vice President (VP) of Commodity and Currency Research at IIFL Securities said that the fall in the Dollar Index is good for gold in the short term and investors can look to buy gold and silver futures now. He also said that the lower import prices will bring down prices of physical gold, but will have a negative impact on futures which trade on the exchanges.

Gold futures on the MCX have gained by 0.84% or Rs 486 per 10 gram on the month- to-date basis. They were up by 6.71% or Rs 3,689 on the year-to-date basis as on Monday, July 10 on the closing price basis. Meanwhile, Silver futures have gained nearly by Rs 1,355 or 1.94% in value terms in July while gaining by 2.89% or Rs 2,005 on the YTD basis.

The price of physical gold In bullion markets in Delhi-NCR is around Rs60,200 per 10 while that of Silver is Rs 73,500 per kg.

Gupta’s buy recommendations are:

Buy MCX August Gold futures at Rs 58,400 with a stop loss of Rs 58,200 and price target of Rs 58,900.

Buy MCX September Silver futures at Rs 71,500 with a stop loss of Rs 70,800 and price target of Rs 73,000.