Gold, Silver Price Today: 'Buy the fear, sell the greed' - Expert strategy for precious metals - Check target

Gold, Silver Price Today: In the national capital, precious metal prices fell sharply on Friday, February 6, when silver prices plunged nearly 5 per cent to Rs 2.55 lakh per kg, and gold slid to Rs 1.57 lakh per 10 grams. This came on the back of continued profit booking by investors for the second consecutive session, after the recent rally in bullion prices.

Spot gold opened on a weak note and hit a low of USD 4,654 per ounce, but recovered sharply and is trading with a gain of around 2 per cent at USD 4,880 per ounce, Praveen Singh, Head of Commodities, Mirae Asset ShareKhan, said.

He added that weak jobs data supported precious metals, but hopes of a breakthrough in US-Iran talks capped the upside.

According to the All India Sarafa Association, the white metal plunged Rs 13,000, or 4.85 per cent, to Rs 2,55,000 per kilogram (inclusive of all taxes) from Thursday's closing level of Rs 2,68,000 per kg.

Gold and silver have been on a roller-coaster ride, with sharp rallies followed by sudden corrections. Market experts reveal how to navigate the volatility and the key price levels investors should keep an eye on.

Gold, Silver Price Today: Expert strategy for precious metals

Many investors bought silver because of FOMO, but many of them became cautious. Experts said fundamentals for both gold and silver are strong, and investors are seeing a good recovery in the coming days.

Market expert Nitin Kedia said that next quarter is going to be good.

"Those who have invested in ETF or physical, and those who are afraid now, my advice to them is that if possible, do not look at the prices in February and March. I think things will start getting better after February 15. But if you don't look at the prices for 15-20 days, then your fear will be out," he said.

Kedia added, "My advice to other traders is to buy the fear, sell the greed. This is the maximum fear time. If you look at Bloomberg's Greed and Fear Index, it is also coming at a 12-point value, which is telling that there is extreme fear."

So whenever we look at the markets in extreme fear, we see that after 20-25 days, we always see a good recovery, he added.

Gold Silver Price Outlook

Market expert Bhavik Patel said no fundamental factors have changed in the past 4 days. In fact, the fundamental factors of last week and the fundamental factors of this week are the same.

“Neither has the demand for gold and silver decreased overnight, nor has there been any supply issue in mining. But as we saw, the rally from November to January was overstretched," he said.

There is a FOMO, so there is a selling from somewhere and this is what we saw: a lot of leverage positions were unwound.

"So I would say that it is just a matter of positioning. I feel that the value is right in gold and silver. I would say that in the international market, if it comes between USD 60 to 65 per ounce, then it will be a good value in silver, maybe between Rs 1,80,000 to 2,00,000 in India, the market expert said.

"If we talk about gold, the level of USD 4200 to 4300 per ounce is very strong. I think it is a value. If it comes there, you can buy it. If you look at MCX, I would say between Rs 1,48,000 to 1,49,000," he suggested.

"I think those who did not participate in the rally, who are left, should start accumulating from here, the market expert added.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)