Gold prices have risen after hitting a one-month low. Should you buy now?

According to commodity market experts, gold prices Dollar index has declined from the level of 113 to below the level of 111. He said the US Fed seemed more rigid than expected and downplayed expectations of any changes to its toughening plans. This pushed the greenback to 113 points. However, it gave up most of its gains after the Chinese move to a ‘zero Covid’ policy. This is expected to strengthen the yuan and increase demand for metals including bullion. He said that at present gold prices are in the range of $ 1,620 to $ 1,685 an ounce. If it breaks the upper band, it is likely to move towards $1,710 an ounce level. On MCX, he said that the price of gold is expected to remain in the range of Rs 49,800 per ounce. 50,900 per 10 g level. Upon breaking the immediate resistance, it can go up to 51,300 more 51,800 levels. He advised gold investors to keep these key levels in mind and maintain a ‘buy on dips’ strategy as the overall sentiment for gold may remain ‘sideways bullish’.

Reasons for the rise in gold prices

Speaking on the reason behind the rebound in gold prices, Sugandha Sachdeva, Vice President – Commodity & Currency Research, Religare Broking said, “Gold had set a positive week, with a gain of 1.27% domestically in three quarters. Turns to week’s high. Markets and international markets edged higher by over 2%. Dollar index dropped most of the gains recorded during the week below 111 points, which pushed gold prices by Rs 50000 per 10 grams or 1615 Dollar per ounce mark.

The Religare expert said the US Fed raised interest rates by 75 bps to a target range of 3.75 per cent to 4 per cent, the fourth major hike in a row as it remains firmly committed to tackling inflationary pressures. The US central bank sounded harsher than expected and downplayed expectations of any changes to its toughening plans. This pushed the greenback to 113 points. In addition, the Bank of England also raised rates by 75 bps – its biggest single increase in 33 years, but maintained a slightly softer stance and signaled a softer tightening path in the coming months.

“As for other key economic data, the US job market remains fairly healthy, with the US economy adding 261,000 jobs in October, much higher than the 200,000 jobs estimate, although slightly lower than in September. Although the unemployment rate The increase was over 3.7 per cent against 3.5 per cent in the previous month and the hourly wage slowed to 4.7 per cent as against 5 per cent, leading to a fall in the dollar index by a significant 113 points,” Sugandha Sachdeva Religare Broking said.

Gold Price Outlook

Speaking on the Gold Price Outlook, Anuj Gupta, Vice President – Research, IIFL Securities said, “The gold rates today are mainly determined by global triggers, especially the US Dollar. Hence, one should be able to look at the spot price of gold. Need to watch where immediate support is found. Gold is trading at $1,620 an ounce today while strong support is at $1,600 an ounce level.”

On the outlook for gold rates in the domestic markets, Anuj Gupta of IIFL Securities said, “On MCX, immediate support for gold rates today is placed on the upside. 49,800 while it is facing immediate resistance at 50,900. upon breach 50,900 resistance, gold rate may move higher 51,300 more 51,700 per 10 grams in the short term. My advice to gold investors is to keep buying on the downside and keep these important levels in mind while taking positions in the precious yellow metal.”

Gold price today: Chinese triggers to watch

Echoing the views of Anuj Gupta, Sugandha Sachdeva said, “For the forward outlook, we envisage gold prices to remain around support. from 49,800 50,000 per 10 g area while a decisive break above the critical 50,050 per 10 grams mark will lead to further rise in yellow metal and increase in prices 51,700 per 10 gram mark in the coming days.”

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