gold price Expired on Multi Commodity Exchange (MCX) at 74 high On Friday, the level of 47,810, recorded a weekly increase 355 per 10 grams. However, today gold price on MCX is still around 8,400 below its lifetime high 56,200 per 10 grams. According to commodity market experts, the price of gold on MCX has been on a downtrend since last one and half year after reaching its lifetime high in August 2020. The rise in crude oil prices is fueling global inflation, which is expected to push up prices, he added. The price of the precious yellow metal in the near future.
According to commodity and currency trading experts, spot gold is trading in the range of $ 1780 to $ 1835 an ounce and after breaking the current hurdle at the level of $ 1835, it will go up to the level of $ 1900 to $ 1910 an ounce. can. He said rising crude oil prices in the global market is expected to further boost global inflation, which will lead to weakness in major global and local currencies, leading to further upside in gold prices.
Crude oil price will push up gold prices
Speaking on the triggers that could support the upside in gold prices in the near future; Anuj Gupta, Vice President, Commodity & Currency Trade at IIFL Securities, said, “Recent US economic data indicates serious inflationary concerns and the problem is expected to worsen as crude oil prices touch the $100 level in the near term. In that case, local and major global currencies are expected to weaken and the Indian National Rupee (INR) which has appreciated to levels of 74 against the US Dollar (USD) in the last fortnight is expected to move from 74.50 to 75. Hence, both domestic and international factors are indicating a sharp rise in gold prices in the near term.”
Gold Price Outlook
Echoing the thoughts of Anuj Gupta; Amit Sajeja, Vice President of Commodity Research at Motilal Oswal, said, “Over the past fortnight, spot gold prices have been in the range of $1780 to $1835 an ounce and I expect spot gold rates to soon revisit the $1835 level. After this breakout, the price of gold in the international market may soon go up to the level of $1900 to $1910 an ounce in the next one to two months as the market has already given interest rate relaxation announced by the US Fed. Already happened.”
Unveiling the investment strategy for gold investors, Ami Sajeja of Motilal Oswal said, “As long as gold is trading in the range of $1780 to $1835 an ounce, one should keep buying on the short term dips strategy. . Term time horizon for the next 2-3 months, he can maintain his position for the target of $1900 to $1910 per ounce.”
Speaking on the outlook for gold price in the domestic market; Anuj Gupta of IIFL Securities said, “Currently, gold price on MCX has strong support today. 46,500 level while it has immediate support 47,200 levels. Hence, short term gold investors can buy gold at the current market price and keep depositing till the above Maintaining a stop loss at the level of 47,450 per 10 grams 47,200 level for immediate short term target 48,200 per 10 grams. However, for medium term investors who have a time horizon of 2-3 months, I would suggest them to start depositing at the current levels while maintaining the stop loss. 46,500 levels. Gold rates on MCX may be affected soon 48,700 levels. Once, the precious metal breaks this important barrier, we can expect it to go up even from 49,500 50,000 level by the end of March 2022.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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