Indian gold futures declined on the back of fall in overseas markets and rise in rupee post Barack Obama's announcement of raising US debt ceiling.
At 5:29 hours IST, August gold was trading 0.5% lower at Rs 23,050 per 10 grams on the Multi Commodity Exchange (MCX), after hitting a low of Rs 22,965 in early trade. Spot gold in international market slipped USD 7.5 to USD 1,619.70, an ounce after hitting a low of USD 1610.90/ounce.
However, experts feel that gold price is unlikely to slip much. Not expecting major correction in gold, Kaushal Jaini of Dani Commodities suggests buying gold only if it slips 5-6%. According to Jaini, gold may test Rs 23700 per 10 grams in a year’s time frame. "I am bullish on Gold as whole," Jaini added.
Meanwhile, Astha Jain, Senior Research Analyst, Hem Securities feels that gold is likely to touch Rs 24,000/10 grams by the year-end.
Astha Jain sees support at Rs 22920 and Rs 22830 for the August futures. She advises investors to go long on gold with stop loss of Rs 22700 for a target of Rs 23300-Rs 23400. For new investors, she suggests entering at Rs 22700-22800 per 10 grams.
Jain feels that gold will touch USD 1700 an ounce in international market.
