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Experts say the fall in gold prices is a positive for gold buyers in India and those interested in investing in physical gold for the long term.
As gold prices have broken the double-top neckline support of $3,200, more downside is expected up to $3,000-50 (about Rs 87,000-Rs 88,000) in the short term, says Augmont.
Gold prices have fallen in the past few days amid positive developments around US-China trade discussions, US-Iran nuclear talks and the Russia-Ukraine war, apart from renewed momentum in the equity markets. In India, the price of 24-carat gold has fallen below Rs 95,000. Experts said the fall in prices is a positive for gold buyers in India and those interested in investing in physical gold for the long term, especially ahead of the upcoming wedding season.
In Mumbai, the price of gold stood at Rs 86,140 per 10 gram for 22-carat and Rs 93,870 per 10 gram for 24-carat in the morning. Silver prices were at Rs 96,900 per kg.
Aksha Kamboj, vice-president of the Indian Bullion and Jewellers Association (IBJA) and executive chairperson of Aspect Global Ventures, said, “Gold prices across the globe have declined to their lowest level in a month. Factors that raised bullion rates, including the US-China tariff tensions, the Russia-Ukraine war, and the volatility in the equity markets, all appear to be easing. This has also impacted bullion prices in the Indian market. However, the fall in prices is a positive for gold buyers in India and those interested in investing in physical gold for the long term, especially ahead of the upcoming wedding season.”
Additionally, higher bond yields in the US and the tempering down of rate cut expectations by the US Federal Reserve could put further pressure on global gold prices, which may affect prices on the MCX too, he added.
“In the current scenario of geopolitical tensions and currency fluctuations, gold continues to emerge as a reliable asset. While there might be a possibility of short-term price correction, the yellow metal will continue to remain a safe-haven asset. For consumers, gold will continue to offer both financial strength and emotional significance. Therefore, investing in gold remains a powerful way to celebrate prosperity and secure your future,” Kamboj said.
The US Dollar Index on Friday fell by 0.29 per cent to 100.59.
Rahul Kalantri, vice-president (commodities) of Mehta Equities, said, “Gold and silver experienced a volatile session, initially declining on hopes of easing US-China trade tensions and renewed prospects of a US-Iran nuclear deal. However, both metals rebounded as mixed US economic data and profit-booking in the dollar index supported a recovery. Gold tested the key support level of $3140 per ounce but rebounded strongly to erase earlier losses and closed on a positive note. Silver also recovered, aided by softer US PPI data and better-than-expected retail sales figures.”
Gold has support at $3195-3175 while resistance at $3245-3260. Silver has support at $32.10-31.80 while resistance is at $32.65-32.85. In rupee terms, gold has support at Rs 92,850-92,480 while resistance at Rs 93,650-93,890. Sliver has support at Rs 95,080-94,450, while resistance at Rs 96,650-97,250.
Gold Price Prediction For Near Term
As gold prices have broken the double-top neckline support of $3,200, more downside is expected up to $3,000 (about Rs 87,000) in the short term, says Augmont, said Renisha Chainani, head (research) at Augmont.
Silver prices are expected to get momentum now, as the tariff war has de-escalated. We are likely to see prices touching $34 (nearly Rs 99,000) and $35 (about Rs 1,02,000) soon in the coming days, Chainani added.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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