Gold price prediction: Gold bulls eye Rs 1.10 lakh/10 gms. Should you accumulate?

Investors booked profits in gold amid volatility linked to Trump-era tariff concerns, with June gold futures on the MCX opening lower by Rs 592, or 0.62%, at Rs 94,797 per 10 grams on Friday. This came despite preliminary GDP data showing a contraction, which had boosted bullion’s safe-haven appeal in the previous session.

Despite ongoing price swings, analysts remain bullish on gold, projecting it could rally to Rs 1,10,000 per 10 grams within a year, citing its historical track record of delivering strong returns to investors.

On Thursday, gold and silver settled on a positive note in the domestic and international markets. Gold June futures contract settled at Rs 95,389 per 10 grams with a gain of 0.12% and silver July futures contract settled at Rs 97,826 per kilogram with a gain of 0.59%.

Meanwhile, on Friday, silver July futures contracts at MCX also opened lower by Rs 884 or 0.9% at Rs 96,942/kg.

Gold and silver showed very high price volatility on Thursday. Gold prices were sharply down after the U.S. Federal court blocked Trump’s tariff plan, but prices recovered from their lows after the U.S. President said that he would appeal against the court ruling.

The dollar index also plunged, and the U.S. jobless claims increased larger than expected and supported precious metal prices. The dollar index hit 100 marks in the early trading session but was unable to sustain at higher levels and plunged again.

Today, the US Dollar Index, DXY, was hovering near the 99.44 mark, gaining 0.16 or 0.16%.

The U.S. jobless claims increased last week to 2,40,000 against expectations of 2,29000. The preliminary GDP data is also showing contraction in the economic growth and supporting precious metal prices.

“We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index, geo-political tensions and ahead of the key U.S. economic data; gold prices could hold its support level of $3,250 per troy ounce and silver prices could also hold $32.80 per troy ounce levels on a weekly closing basis,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

How to trade gold?

Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:

• Gold has support at Rs 95,000-94,600 and resistance at Rs 95,800-96,160
  
• Silver has support at Rs 97,100-96,600 and resistance at Rs 98,300-99,100
  

Jain suggests buying silver around Rs 97,200-96,800 with a stop loss of Rs 96,400 for a target of Rs 98,400.

Gold price prediction

From an investor’s perspective, a report by Angel One suggests that despite all the volatility, gold has historically paid good returns, and one should make investments in gold from a long-term perspective.

“From a year perspective, $4000/ounce in the international markets and Rs1,10,000/10 gm in the Indian markets looks very much likely,” they predict.

With that, they advise that one should wait for meaningful correction towards Rs 85,000/10 gms for accumulation.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 57,800/8 grams while pure gold (24 carat) prices stand at Rs 61,584/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 57,464/8 grams while pure gold (24 carat) prices stand at Rs 61,256/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 56,816/8 grams while pure gold (24 carat) prices stand at Rs 60,504/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 56,984/8 grams while pure gold (24 carat) prices stand at Rs 60,760/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)