Gold prices fell ₹2,300 from life high. Right Time To Buy?

According to commodity market A slightly ‘moderate’ stance on interest rate hikes by experts, the US Fed and most European central banks attracted dollar demand, allowing US dollar rates to bounce off 10-month lows. This pullback in the US dollar did the job of reducing the rally in gold prices. However, he said that gold today took strong support near $1,860 level in the international market. Experts said the precious metal is placed on strong support In the domestic market, it is expected to trade near 56,500 levels and from this support, it is expected to bounce towards 57,700 per 10 grams, the demand is expected to fall. we Note.

on the reasons of Sleep Market expert Sugandha Sachdeva said, “In the first policy meeting of the year, the US central bank hiked rates by 25 bps to a target range of 4.5 per cent to 4.75 per cent on expected lines, while it acknowledged easing of price pressures.” and maintained a slightly accommodative stance. In tandem, BOE and ECB also stayed on a largely soft track while borrowing costs increased by 50 bps, which attracted flows towards the US dollar and prompted a retreat It’s a ten-month low.”

Sugandha further said that the US Jobs report indicated a very strong labour market While non-farm payrolls increased by 517,000 jobs in January, a much higher than expected 185,000 job addition, while unemployment rate fell 3.4 percent.

Sugandha Sachdeva said, “Average hourly earnings rose 4.4 per cent (YoY) in January compared to 4.9 per cent in December, indicating moderation in wage inflation. Such impressive labor market data further strengthened the dollar index.” and accelerated the decline in gold prices.”

Agreeing with Sugandha’s views, Nirpendra Yadav, Senior Commodity Research Analyst, Swastika Investmart said, “A relatively small increase Gold prices moved up by 25 basis points by the US Fed Silver prices have reached close to the level of Rs 58,800 per 10 grams. 72,700 per kg on MCX. However, the dollar index gained at the end of the week due to the US central bank’s uncertainty over the extreme level of interest rates, triggering profit-booking in the precious metal. The slow growth rate of the US economy may force the US Fed to stop raising interest rates and reduce them by the middle of this year.”

gold price outlook

Nripendra Yadav further said that the global economy is under pressure due to frequent interest rate hikes by central banks, and this is expected to propel gold prices after the recent correction.

Speaking on the fall in gold prices, Sugandha Sachdeva said, “There is strong support 56,500 per 10 gm and $1860 per ounce mark which may lead to a further drop in the prices towards Rs 57700 per 10 gm. However, any concrete break 56,500 per 10 gram mark and $1,860 per ounce mark may push the prices further down 55,500 per 10 grams and $1,820 an ounce mark in the coming days. Markets will await comments from various Fed officials next week to see whether the US central bank will hold off on tightening after March.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.