Gold prices fall after four weeks of rally Is this a buying opportunity?

According to commodity market experts, spot gold price Immediate support is placed at the level of $1,730 per ounce while the key support is still placed at the level of $1,670 per ounce. Gold prices on MCX are placed near immediate support 51,000 level while key support is still below 48,750 . is placed on 48,800 per 10 grams level. He said a stronger dollar is expected to put pressure on gold and the precious yellow metal may come closer to its immediate support. However, he added that the overall ‘outlook for the price of gold’ is ‘sideways from positive’.

Reasons for fall in gold prices

Sugandha Sachdeva, Vice President, Commodity & Currency Research, Religare Broking, while talking about the reasons for the fall in gold prices said, “After four consecutive weeks of gains, gold rally stopped and prices faced selling pressure while facing resistance. Leading the way. Psychological $1800 an ounce mark. It was primarily a strength in the dollar index that acted as a major headwind for the precious metal. The dollar index retreated nearly 3 percent since testing a low of 104.63 points Gold prices surged in this corrective wave, pushing them to a three-week low. The greenback picked up steam as market participants focused on the minutes of the July Fed meeting, which indicated that Policymakers are committed to raising interest rates until they are convinced that inflation has risen by 8.5 percent in July from the year-ago level, up from 9.1 percent in June in the 12 months to June. After.

In addition, several Fed officials, after the release of upbeat US macroeconomic data, have spoken out on the need for further super-size rate hikes to tackle runaway inflation, further consolidating the DAX to a one-month high at the end of the week. helped to obtain. When weighing gold. In terms of other key figures, inflation in the UK accelerated to a sharper-than-expected 10.1 per cent in July from a year earlier. This is the highest reading in 40 years. With inflation likely to rise further in the UK due to the energy crisis, this has raised concerns that central banks are likely to remain on their tight path, and weigh more on non-interest-bearing gold.

Gold Price Outlook

When asked about the outlook for gold prices in the near future, Anuj Gupta, Vice President, IIFL Securities said, “Overall, the outlook for gold price is positive and one should refrain from taking any short positions in the precious metal in the short term. Need. In Spot. In the market, Gold price is placed at immediate support level of $1,730 to $1,735 per ounce while its key support is placed at $1,670 per ounce level. On MCX, Gold price is placed at immediate support level. Has gone 51,000 per 10 g level while its key support is placed at from 48,750 48,800 per 10 grams level.”

Experts at IIFL Securities said a firming dollar is expected to keep the yellow metal under pressure for some time and gold investors are expected to trade the yellow metal around $1,730 to $1,735 an ounce level in the spot market and adjoining market. Recommended to buy. 51,000 level in the domestic market.

“For the forward outlook, some further downside may be seen in the prices, but early support is likely to be found. 51,400 per 10 grams and key support 50,700 per 10 gram area from where one can look for bargaining opportunities. In the international markets, the level of $1,750 an ounce is still providing some support to the gold prices, but once it breaks through, the gold will touch the $1730 an ounce mark in the coming days. However, with the Fed’s expectations consolidating the dollar index, all eyes will be on the Jackson Hole symposium next week, which will provide further indications for gold prices,” said Religare’s Sugandha Sachdeva.

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

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