Gold Rate Today: As the Russia-Ukraine war raised global inflation concerns to alarming levels, the Multi Commodity Exchange or MCX gold rate posted its best weekly gain since May 2021. mcx gold price quote today 52,549 per 10 grams and commodity experts are expecting it to go up 54,000 level in the near term. According to commodity market experts, rising commodity prices, especially crude oil and metal prices, may add to inflationary concerns, which could lead to a rise in gold prices in the near future. He said depreciation in Indian National Rupee (INR) against US Dollar (USD) would act as a domestic trigger for rise in prices of the yellow metal.
Gold prices expected to rise further; Sugandha Sachdeva, VP-Commodity & Currency Research at Religare Broking Ltd. said, “Gold continues to entice investors’ interest as Russia’s invasion of Ukraine has worsened risk sentiments in the markets and precious amidst flight to safety. Gold prices climb higher this week to see their best weekly gains since May 2021 Rising tensions may keep demand for gold. Additionally, a rise in commodity prices and a sharp jump in crude oil-year highs have added to inflation concerns, pushing gold prices to hedge against inflation. are on a high trajectory as such.”
Rupee vs Dollar
Speaking on the domestic trigger which could further propel gold prices; Anuj Gupta, vice-president, IIFL Securities, said, “The Indian rupee has depreciated 2.48 per cent year-on-year (YTD) in the spot market, while it has fallen around 1.10 per cent against the dollar in the past one week. Markets: As rising crude oil prices is expected to push India’s dollar outflow further north, it is expected to move to the level of 77 in the near future, provided there is no ceasefire in Ukraine-Russia war.
Anuj Gupta of IIFL Securities said that due to the change of Re 1 against the dollar from 250 300 change in the price of gold per 10 grams. Hence, this depreciation in rupee may act as an additional domestic trigger for a jump in gold prices on MCX.
US Fed hikes interest rates
Prediction of high volatility on gold price ahead of US Fed meeting; Sugandha Sachdeva, Religare Broking, said, “Gold prices are likely to see some supply pressure at the mentioned levels. In view of the consolidation of the Fed’s plan to hike interest rates in its upcoming meeting at the end of the month to contain rising inflation. Major headwind for Gold and Cap’s recent gains. However, no confidence close to $1970 per ounce or 52,500 per 10 grams will further increase gold prices.”
mcx gold price target
Speaking on gold price outlook in the near term, Anuj Gupta of IIFL Securities said, “As I said earlier, gold prices are expected to rise further, provided there is no ceasefire in Russia-Ukraine conflict. Anyone can buy MCX gold. from 51,500 For near term target of 51,800 per 10 grams range from 53,800 54,000 levels. However, one must maintain a strict stop loss Taking the position of 51,000 fresh purchases. He advised gold buyers to keep an eye on spot gold price as it now has immediate support at $1940 an ounce level while it has strong support at $1880 level. Experts at IIFL Securities said if the precious bullion metal remains above the $1970 level, it is likely to move higher towards the $2,000-$2,020 levels in the near term. However, in case of profit-booking at current levels, he advised gold buyers to take fresh buy positions around the $1940 level.
Gold prices rose on Friday after US payrolls report showed sluggish wage growth despite a spurt in hiring last month. US payrolls data could offer some respite from strong inflationary pressures as the Federal Reserve prepares to raise interest rates.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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