Gold outlook: Expert says accumulate yellow metal at Rs 47,300
Traders can go for buy in gold at Rs 47,300 levels with the stoploss of Rs 47,000 levels and for the target of Rs 48,000 levels: Anuj Gupta, Angel commodities
Tracking softness in the international spot prices, gold prices were trading flat on February 12.
Prices are up 0.5% so far this week. U.S. gold futures slipped 0.3% to $1,821.10.
On MCX, April gold contracts were trading lower by 0.02% at Rs 47,500 per 10 gram at 10.25 am.
March silver futures were trading 0.41% higher at Rs 68,770 a kilogram.
Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking believes signs of mild inflation seem to be denting its safe haven appeal.
“The fall in the yellow metal was limited as the dollar extended its losses reflecting the dismal employment data posted by US last week and decreasing US treasury yield,” said Gupta.
Other factors impacting gold prices currently include a weaker US currency and also the US House of Representatives approving a budget outline which has paved the way for President Joe Biden’s $1.9 trillion coronavirus virus relief stimulus package.
“Stricter lockdowns in major economies like UK, Germany, France and China due to resurgence of the virus dampened the outlook which underpinned gold prices,” said Gupta.
On the strategy investors must adopt, Gupta said: “Traders can go for buying gold at Rs 47,300 levels with stop loss of Rs 47,000 levels and target of Rs 48,000 levels. Traders can also go for buying silver at Rs 68,300 levels with the stop loss of 67,600 levels and target of Rs 69,500 levels.”