Gold, Silver bounce back from record highs Should you buy in this correction?

According to commodity market According to experts, gold and silver prices recovered from their respective new highs after strong US non-farm payrolls data, which started profit-booking as the weekend session ended. He said that the immediate support in the international market today is kept at $2,010 per ounce. He said that immediate support for silver price is placed near $25.40 per ounce level today. However, he added that the weakness in the US dollar and economic slowdown in the US is going to support the uptrend in gold and hence this fall can be a good opportunity for the bargain hunters as it is advisable to buy around the support levels.

US non-farm payroll data is in focus

Why gold and silver prices have fallen from their lifetime highs, Anuj Gupta, Vice President – Research at IIFL Securities “Gold and silver rates pulled back from their respective peaks in the weekend session following a strong non-payrolls data announcement by the US administration. The US Bureau of Labor Statistics reported on Friday that total non-farm payroll employment in April 2,53,000 increased, and unemployment rate Little changed at 3.4 percent.”

Anuj Gupta of IIFL Securities said that gold today takes immediate support near $2,010 an ounce, while its key support lies in the $1,980-$1,975 an ounce level. Similarly, silver rate today took immediate support near $25.40 level, while the major support for the metal lay near $24.60 per ounce.

Agreeing with Anuj Gupta’s views, market expert Sugandha Sachdeva said, “The US non-farm payrolls data for April was upbeat indicating a strong labor market. This led to a rise in US Treasury yields and a rise in the precious metal.” There was some profit-booking. Also, the latest WGC report suggests that global gold demand has declined by 13 per cent (YoY) in the first quarter of 2023, which has impacted the prices to some extent.

lack of demand

Due to fall in gold and silver prices, Colin Shah, MD, Cama Jewellery, said, “Gold demand in the domestic market witnessed a sharp decline in the first quarter of calendar year 2019 due to record high gold prices in the domestic market. Indian market Consumers were apprehensive about investing in gold and buying jewelry during the quarter. The 18K jewelery category continues to grow in popularity due to the high prices of 24K gold. On a standalone basis, gold demand was strong but lower than last year’s record demand.” However, Johri added that gold demand is likely to remain stable in the coming quarter as a normal monsoon year will boost rural demand across India. Will promote

Cama’s Colin Shah said, “The festive and wedding season in H2CY23 will witness positive consumer sentiment. On the institutional front, central banks including RBI and ETFs are likely to pile on gold as signs of recession in the US become more evident.” ” jewelry.

Gold, Silver Price Outlook

Speaking on gold rate outlook today, Sugandha Sachdeva said, “Looking ahead, prices have moved up a bit and a minor resistance is emerging around it. 61,500 per 10 grams and any violation of the same would mean advance 62,500 per 10 grams in the coming days. However, the price outlook remains positive in the near term as long as the prices remain above 59,500 per 10 gram mark or $1,975 per ounce on a closing basis.

“For silver, the immediate hurdle is prices Any solid move towards and above the 78,000 per kg level will be considered as a bullish signal and will lead to an extension of the up move, else it may drop down to find support around the level Sugandha said, Rs 74,400 per kg in the coming days.

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.