Right now, there will be slight gains in gold in the short term.
The government announced the imposition of 5 percent import duty on gold so that its imports could be brought down. After the imposition of import duty, the price of gold registered a jump last week. However, the sentiment is still not very strong.
Government hikes 5 percent on gold import duty ,Import duty on Gold) due to which a jump in its price was registered last week. Gold on MCX in Domestic Market (gold rate today) registered a rise of 2.56 percent last week and closed at Rs 51917 per ten grams. At the same time, spot gold in the international market recorded a decline of 0.88 percent last week and closed at the level of $ 1810. During trading, it touched the lowest level of $ 1784. Spot gold is at a six-month low. In this way, different trends are being seen in the price of gold in the domestic and international markets.
Anuj Gupta, Commodity Expert of IIFL Securities said that last week the price of silver on MCX declined by 3.71 percent and it closed at Rs 58182 level. During weekly trading, it touched a low of 57537, which is the lowest level of two years. In the spot market too, silver broke the level of $ 20 and closed at the level of $ 19.80 per ounce. This is the lowest level in two years. At present, there is pressure on other types of commodities including Agri Commodities and Metals. The possibility of lack of demand due to the slowdown has driven the prices down.
Gold will increase due to the possibility of recession
Anuj Gupta said that the US Federal Reserve is aggressively increasing the interest rate. Due to this, pressure is being seen on the price of gold. Inflation is already at its peak. In such a situation, if the unemployment data is weak, then it indicates a slowdown in the US economy. In June, US manufacturing activity recorded its biggest decline in two years. At the same time, the Consumer Confidence Index has also reached a 16-month low in June. In such a situation, if the possibility of recession increases, then again gold will rise. By the way, so far investors are denying its possibility. Therefore, the effect of the increase in the interest rate from the Federal Reserve is being seen and there is pressure on the price of the yellow metal.
At what level to buy and when to sell?
Talking about the gold outlook and trading call for this week, buying can be done at the level of 51200. Place a stop loss at Rs 50600 and target Rs 52500 first and then target Rs 52700. Talking about silver, there is a possibility of a fall in it now and it can slip to the level of 57000.