gold rate today Despite Fed’s bond tapering news, MCX (Multi Commodity Exchange) gained more than 0.50 per cent. On MCX, the February futures contract of the yellow metal opened with an upside gap and hit an intraday high 48,367 per 10 grams, appreciating to the tune of 302 per 10 grams against its yesterday’s bandh 48,065 per 10 gram mark. According to commodity market experts, this rise in gold price today was expected as the Fed’s bond announcement last night was on the market’s expected line. He said that the precious bullion metal may further rally but this rally will be limited in the short term time-horizon.
Reasons for the rise in gold prices
According to commodity market experts, gold prices saw a sharp jump in this morning’s deals as even though the Fed has sounded louder, it was largely on the expected lines and in the coming days, the market will see a sharp jump in these monetary tightening measures. expected to adjust. He said the immediate support for the gold price in the sports market is $1760 an ounce and it may go up to the level of $ 1835 an ounce in a month from the coming fortnight. From the point of view of MCX, said that the price of gold may increase from 49,300 49,500 per 10 grams immediately after breaking the barrier 48,700.
Highlighting the dynamics of gold prices, Sugandha Sachdeva, Vice President, Commodity and Currency Research at Religare Broking Ltd, said, “Gold prices have seen a correction while the Fed doubled the pace of bond tapering in its latest meeting. and has opened the door for three. Rate hikes in the US in 2022 amid rising price pressures and a recovery in the labor market. Even though the Fed cracked down, it was largely on expected lines and the market is expected to adjust to these monetary tightening measures in the coming days. Furthermore, markets are waiting for other major central bank meetings – the ECB, the Bank of England and the Bank of Japan – for further clues about monetary policy divergence among major central banks. This will pave the way for the dollar index and will pave the way for the precious metal. That said, any fall in gold prices in the near future should be considered by gold investors as a good buying opportunity.”
Gold Price Outlook
Gold price expected to rise further; Amit Sajeja, vice president of commodity research at Motilal Oswal, said, “The Fed’s announcement last night was as expected and the market had already discounted the price of gold before the Fed meeting yesterday, when the spot market gold was priced at $1,753. per ounce.But, today there is a sharp jump in gold price and is expected to continue for a month from next fortnight.However, in the near term the growth in the yellow metal will be limited and it will cross $1760. May trade at $1835 an ounce level. Hence, I would suggest gold buyers to buy on downside keeping these upper and lower levels in mind and book profit.”
Resonating with the thoughts of Amit Sajeja; Anuj Gupta, Vice President, Commodity & Currency Trade, IIFL Securities said, “In the immediate short term one can buy gold. 48,200 level on MCX for immediate target 48,500 per 10 grams. Impact of gold on MCX After breaking the 48,700 level and this hurdle, the yellow metal price may move higher 49,300 to 49,500 per 10 grams in a month’s time from pure fortnight. Short term gold investors can continue buying on dips while maintaining stop loss 47,700 levels.”
Beginning one of the fastest policy moves in years, the US Fed said on Wednesday it would double the speed at which it is expanding purchases of Treasury and mortgage-backed securities to $30 billion a month, calling it Keeps on track to finish. program in early 2022, instead of mid-year as initially planned.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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