gold rate today climbed to its 19-month high and recovered Deal took place at the level of 54,000 in the commodity futures market this morning. Multi Commodity Exchange or MCX Gold Rate closed its intraday high today 54,190 per 10 grams, which is reasonable 2,000 away from its all-time high 56,191 which he made in August 2020. The spot gold price also climbed up to the $2020 level, just $55 an ounce from its lifetime high of $2075.
According to commodity market experts, gold prices are skyrocketing due to further escalation in Russia-Ukraine war, refusal of 50 bps hike in US Fed interest rate, hike in crude oil and other commodity prices. And the Indian National Rupee (INR) has declined. US Dollar (USD).
Highlighting the reason for skyrocketing gold price; Anuj Gupta, Vice President, IIFL Securities said, “Gold prices hit a 19-month high after further escalation of Russia-Ukraine tensions. US fighter jets flying near Ukraine border further aggravated geopolitical tensions. Global equity markets. As commodity prices, especially crude oil and metals hit multi-month highs, this has helped investors climb further.” He said India mainly meets its demand for oil through imports and rising crude oil prices have raised the possibility of dollar outflows, pushing the rupee to its record low. This fall in the rupee against the dollar is acting as a domestic trigger for a rise in gold prices.
Echoes with Anuj Gupta of IIFL Securities; Sugandha Sachdeva, Vice President, Commodity & Currency Research, Religare Broking Ltd. said, “All these dynamics augurs well for further upside in gold prices. Initially 56,000 per 10 grams, from where a sustained move above would charge the rally 60,000 per 10 grams as well from a medium term perspective.”
Unveiling important levels that gold investors should remember as the yellow metal has become highly volatile; Amit Sajeja, Research Vice President, Motilal Oswal said, “Gold price is currently moving towards $2040 an ounce and has found immediate support from $1965 to $1970 an ounce level. On MCX, gold price strengthens. is support. 52,200 per 10 grams while the immediate target is 55,200 in the near term.”
Gold Price Outlook
On whether the gold price will climb to its new peak in the current rally; Amit Sajeja of Motilal Oswal said, “If spot gold price sustains above $2040 or gives a breakout at these levels depending on the close, we can expect it to reverse the current gold price rally to $2075. MCX will break its lifetime high and a new peak is likely to be seen near the $2100 to $2120 an ounce level in the spot market. A new peak for gold price may be seen around the MCX 57,200 per 10 g level.”
However, commodity market experts said a lot depends on the Russia-Ukraine conflict and advised to keep an eye on Russia-Ukraine news as any development towards a ceasefire could lead to a sharp fall in gold price. .
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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