Gold Becomes More Attractive, Futures Decline by Rs 2,500 This Week: Should You Buy Now or Wait? 10 Things to Know

Gold

Gold Rate Weekly Trend: Gold futures on MCX are poised to register a weekly loss of over three per cent, with the spot rate falling by 1.7 per cent so far this week. As of last count on Friday, gold futures for June 5 and August 5 delivery on MCX were at Rs 71,374 and Rs 71,550, respectively, showing a decline of Rs 2,337 and Rs 2,505 for the week. Here’s a detailed look at current gold prices:

Gold Rate Weekly Trend: Domestic gold futures are on track to end the week approximately three percent lower, prompting many investors to seek the right moment to invest in gold. While the spot rate in Ahmedabad was around Rs 71,750 per 10 grams on Friday, MCX gold futures for June 5 and August 5 deliveries stood at Rs 71,374 and Rs 71,550, respectively, down by Rs 2,337 and Rs 2,505 for the week.

10 Things to Know About Gold Rates in India This Week:

Friday Evening Session: Both MCX gold futures contracts were down 0.3 percent each in the first hour of the evening session on Friday. The June 5 contract dropped by Rs 203 to Rs 71,374, while the August 5 contract fell by Rs 239 to Rs 71,550.

Weekly Losses: MCX gold futures are on track to register weekly losses of 3.2–3.4 percent at their intraday lows on Friday. The spot rate has decreased by 1.7 percent so far this week.

Long-Term Trend: Many analysts believe gold remains in a positive long-term trend, with some suggesting the weekly dip as a buying opportunity.

Investment Recommendation: “We recommend buying gold on dips from an investment perspective around $2,310 per ounce (international) or Rs 70,300 per 10 grams (domestic),” said Manoj Kumar Jain, Director-Head of Commodity and Currency Research at Prithvi Finmart, to Zeebiz.com.

Supporting Factors: Geopolitical uncertainties, central bank buying, and expectations of lower benchmark interest rates are likely to support gold prices in the long term, according to Ajay Kedia, Managing Director at Kedia Commodities.

Gold and Interest Rates: Traditionally, gold and interest rates have an inverse relationship, where gold becomes more attractive as a store of value when interest rates fall, and vice versa.

Key Levels Support: “Gold and silver seem to be finding support at key levels after the recent significant drop, while the dollar index appears weak,” Kedia told Zeebiz.com.

Short-Term Movement: Short-Term Activity: “Gold is likely to move towards Rs 72,500 from the important support of Rs 71,000. Silver touched $32.5 an ounce and retreated, but held key support at $30 (Rs 90,000 per kg). As long as silver remains above Rs 90,000, it can reach Rs 93,000 in the coming days,’ Kedia said.

Buying Strategy: “Gold is in a long-term uptrend. One can buy gold near Rs 70,000 and silver near Rs 87,000-88,000 for the long term,” Kedia added.

Price Targets: Jain expects gold to reach targets of $2,500 per ounce, or Rs 76,000 per 10 grams, by Diwali and $2,600, or Rs 80,000, by the end of 2024.

Disclaimer

The information provided in this article is for informational purposes only and should not be considered as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions. The author and the publication are not responsible for any financial losses that may occur as a result of investing in gold or any other financial instruments.

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