Gold Price Today: Yellow metal loses luster; Akshaya Tritiya likely to spur demand
With just two days left for Akshaya Tritiya, the yellow metal is expected to regain its appeal. The demand for bullion is expected to increase this time too as investors will look to buy gold in whatever form they deem fit. Buying gold is considered auspicious on this day.
“Generally we see a demand for physical gold go up to 35 to 50 tons around Akshaya Tritya. This year too, we expect a strong buying trend as we have noticed a trend where people look to buy gold when the prices are going up, expecting a further uptick,” Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said.
Gold has given returns of 20% between last Akshaya Tritiya and now, Gupta said, adding that the year-to-date gains stand at 12% for gold and 11% for silver.
Bullion is in a positive trend due to safe-haven appeal amid geopolitical tension, higher oil prices, the US banking crisis and global inflation, Gupta added.
Gold could test Rs 63,000 to Rs 65,000 per 10 grams on MCX while Silver futures are ($2100 to $2200) expected to make new record highs of Rs 78,000-80,000 per kg by the end of 2023, according to him.
June gold futures were trading at Rs 60,421, down Rs 67 or 0.11% in early trade today. Meanwhile, silver futures were trading at Rs 60,421, down Rs 29 or 0.04%. $0.013 or 0.050%.
Intraday Trading Strategy by Anuj Gupta
While spelling out the day’s trading strategy, Gupta advised investors with a near-term view to remain on the buying side. Correction is an opportunity to invest in bullion, he said. He sees gold prices hitting the Rs 62,000 mark in April.
- Buy MCX June Gold futures at Rs 60,100 with a stop loss of Rs 59,800 and price target of Rs 60,700.
- Buy MCX May Silver futures at Rs 74,500 with a stop loss of Rs 73,700 and price target of Rs 75,800.
Triggers & Outlook
The movement of the dollar is inversely related to the price movement in bullion. A weaker greenback makes dollar-priced commodities more appealing to holders of other currencies.
The Federal Open Market Committee (FOMC) of the US Federal Reserve will be meeting on May 2 and 3 to announce the monetary policy. The street will be keeping an eye on the event.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)