There was a good rise in gold last week. Its prices reached a month high. The October futures contract of gold on commodity exchange MCX closed at Rs 51,864 per 10 grams. After touching the level of $ 1,800 in the spot gold in the international market, finally closed at $ 1,774 an ounce.
The reason for the rise in gold is being told due to the changing international environment. Many western countries including America are feared to go into recession. On the other hand, the tension between the US and China regarding Taiwan is increasing continuously.
Whenever political and economic stability increases in the world, the demand for gold increases. Because of this, its prices go up. This is because gold is considered to be the safest medium of investment.
Experts say that the outlook for gold looks positive. However, after the strengthening of the dollar index, profit-booking can be seen in gold. In the international market, the spot price of gold is expected to remain in the range of $ 1,750-1,720 an ounce.
Experts say that if you are thinking of buying gold, then it would be better to wait a bit. After profit-booking, its prices will see a fall. Then its price in the domestic market is expected to come in the range of Rs 51,300-51,500 per 10. Buying at this price will be beneficial. In the international market also, the spot gold price is expected to come down to $ 1,750 an ounce.
On Friday (August 5), there was a slight weakness in gold in the Delhi bullion market. Its price fell by Rs 9 and closed at Rs 52,592 per 10 grams. On Thursday, gold had closed at Rs 52,601 per 10 grams. Silver also declined by Rs 487 on Friday. Its price stood at Rs 58,477 per kg.
Anuj Gupta, Vice President (Research) at IIFL Securities said that overall the outlook for gold is looking good. However, there is a possibility of profitbooking as the dollar index moves above the level of 105. After that it may show a slight decline. Then, a new round of bullishness may begin.