Gold price today: Yellow metal slips on renewed trade optimism; deploy ‘sell on rise’ strategy

Spot Gold and Silver prices slipped in the international market after the first phase of trade negotiations done between US-china on Friday.

Spot Gold test $1474 while Silver prices test $17.34 per troy ounce. MCX Gold prices are likely to test a low of Rs 37,691 and Silver prices tested a low of Rs 44,880.

Phase 1 of the US-China trade deal is done and there may be a phase 2 and 3 for more negotiations. Overall the outcome of trade negotiations is positive as the US postponed a $250 billion tariff on China, in turn, China assured to buy $40-50 billion US farm products. Some negotiations on the currency front are also done.

“Comments from US president and Chinese vice premier come positive. We expect move is big positive for global equities and negative for bullion. As safe-haven demand will ease after recent development. However, recent tensions in Mideast and weakness in the dollar index is slightly supportive for bullion,” Manoj Kumar Jain, Director at IndiaNivesh Commodities, told Moneycontrol.

“But, the recent development on Brexit and rebound in the pound is also negative for bullion. In this weak, Gold and Silver prices are likely to remain under pressure and Gold prices are expected to test $1450 and Silver prices could test $17 per troy ounce in the international market,” he said.

Jain further added that at MCX Gold prices are expected to test Rs 37,500-37,300, and Silver prices are expected to test Rs 44,500 again. The level of Rs 38,050 for Gold and Rs 45,700 for silver are likely to act as major resistance in the domestic market.

“Sell on rise strategy will work this week for both the precious metals with SL above given resistance levels,” he said.