Gold Rate Today: Gold prices rose to a one-month high in the past week on rising concerns of a slowdown in global economic activity and rising tensions in US-China. Gold price on the Multi Commodity Exchange (MCX) ended October futures contract 51,864 per 10 grams while spot gold closed last week at $1,774 an ounce after testing the $1,800 level.
According to commodity market experts, overall outlook gold price Positive but profit-booking is widely awaited after the dollar index bounced back and spot gold is expected to move towards $1,750 an ounce level. Hence, one should wait for the profit-booking trigger and enter from 51,300 In the domestic market, the level of 51,500, while the level of $1,750 in spot gold will be a good buying level for investors.
Speaking on the reason for the rise in gold price in the recent sessions, Sugandha Sachdeva, Vice President – Commodity & Currency Research, Religare Broking said, “Gold prices climbed to a one-month high during the week, reaching a high of $1800. per ounce mark, as weak factory activity data released from various economies deepened concerns of a slowdown in global economic activity.The fall in the dollar index, another key variable behind the recent jump in gold prices Where it fell near 105 points before seeing significant rebound and printing gains for the week. Also, tensions between China and Taiwan escalated amid US House Speaker Nancy Pelosi’s visit to Taiwan, disliking China. for, supported an interest in gold as a safe haven.”
The Religare expert said scathing comments from key Fed officials raised bets for sharp rate hikes this year, leading to buying interest in the dollar at lower levels. Another major highlight of the week was the Bank of England’s interest rate decision, in which it raised key rates by 50 bps to 1.75 per cent, the highest since December 2008 in its fight against scorching inflation. The central bank gave a grim sign for the UK economy on the back of higher energy prices and higher price pressures during the last quarter of the current year and for much of 2023. It is well worth looking for shelter from investors who invest in gold. gold security.
Gold Price Outlook
On gold price outlook in the near future, Anuj Gupta, Vice President – Research, IIFL Securities said, “Overall outlook for gold is positive, but dollar index rebounds from 105 levels suggesting profit-booking ahead of the next rally. Therefore, we can see spot gold price decline from $1,745 to $1,750 levels in the near future, while it may rise to $1,700 levels if the US dollar continues to rise after a strong US job report released on Friday. He said that short term investors can buy gold around from 51,300 51,500 per 10 gram level for the target of 52,600 per 10 grams mark while short term traders have a buy recommendation of around $1,750 in the spot market. However, long term investors are advised to start buying Keep depositing at the 51,500 level and every 4-5 per cent fall, while gold prices in the spot market are likely to accumulate more if they fall from the level of $1,720 to $1,725 an ounce.
Key US jobs reports at the end of the week signaled a strong labor market for the US and established that the economy is not yet in recession. The US economy added 528,000 jobs in July, more than double the expected 250,000 jobs Higher, which said Sugandha Sachdeva of Religare Broking, suggested that the US Fed will continue to hike rates in the near term. This strong payrolls report strengthened the dollar index and dampened some of the recent gains in gold.
On her advice to gold investors, Sugandha Sachdeva of Religare Broking said, “Looking ahead, the overall bias is upward sloping, but we are likely to see a cool-off in the prices, with 52,500 per 10 grams and psychological $1800 per ounce mark are acting as tough resistance levels and limiting the upside. We expect profit booking to start after the recent rally, where gold will find support 51,100 per 10 grams ($1750 per ounce) initially and then on 50,500 per 10 grams ($1720 per ounce). A decline towards the mentioned support areas can be seen as an opportunity for the precious metal to accumulate, from where it could move higher and switch to the downside. 53,500 per 10 g level.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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