Gold prices breakout in the spot market, say experts, a good opportunity to buy

According to commodity market experts, the fall in gold prices in the spot and domestic markets on Friday should be seen as profit-booking as the precious metal has seen a strong rally this week. He said the overall gold price outlook is positive and any fall in the yellow metal should be viewed as a good buying opportunity by the investors. He said that the price of gold in the spot market has given a breakout at the level of $ 1835 an ounce and now it can go up to the level of $ 1900 to $ 1910 an ounce in the next one to two months. In the domestic market, he says that the price of gold on MCX is fluctuating today. 48,200 per 10 grams and it can go up 49,200 per 10 grams in this period. He advised gold investors to remain bullish and follow the strategy of ‘buying on dips’.

spot gold price breakout

Gold prices expected to rise sharply; Amit Sajeja, Vice President of Commodity Research at Motilal Oswal, said, “After staying in the range of $1760 to $1835 an ounce for a long time, the price of gold finally gave a breakout at the level of $1835 based on the close in the spot market. and now we can expect spot gold price will reach to 1865 dollars per ounce in immediate short term however, in next one to two months, we can expect spot gold price from 1890 dollars to 1910 dollars per ounce level.”

Crude oil prices rise to boost gold rally

When asked about the triggers that would support the upside in gold prices in the near future; Anuj Gupta, Vice President, Commodity & Currency Trade, IIFL Securities said, “Global inflation is going to get worse as rising crude oil prices are not going to stop in the near future. In fact, the Brent crude oil price is expected to rise. $ 100 per barrel. This rise in global crude oil prices in the last fortnight has led to weakness in local currency across the world and India is no exception. Rupee has fallen from around 74 level to 74.50 level and it May go up to 75 levels if crude oil prices continue to rise for next fortnight.

How a weakness in the rupee against the dollar could help gold emerge as a safe haven for investors; Avinash Gorakshakar, Head of Research, Profitmart Securities said, “The Indian stock market has witnessed heavy selling in the last four sessions as FIIs are increasingly withdrawing their money from the Indian equity markets. If the weakness in the rupee against the US dollar continues even further. In that case, the return of FIIs in dollar terms will be reduced and they can switch to gold as an alternative to equities.” Avinash Gorakshakar advised investors to watch crude oil prices as its momentum in next one week to two weeks is very important.

MCX Gold Price Outlook

When asked about the gold price target in the domestic market, Amit Sajeja of Motilal Oswal said, “MCX gold price may reach 48,650 in immediate short term while it may go up. 49,200 levels in the next one to two months. However, the move will not be directional and there could be a decline in profit-booking, but these declines should be viewed as buying and accumulation opportunities. Those who have gold position should continue to hold for the immediate goal of 48,650 levels and from 49,000 49,200 levels for the target of one to two months.” Amit Sajeja said that those who want to take fresh positions can buy gold by maintaining the stop loss at the current level for the above-mentioned targets. 47,700 levels.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.