The price of gold and silver has returned from life time high. Buy or wait for further decline?

Similarly, the price of silver on MCX closed at a one-month low. 73,100 per kg, a close to 7.10 per cent improvement from its record high 78,292 levels per kg. In the international market, the gold price today is around $2,010 an ounce while the silver price is around $24 an ounce today.

According to commodity market Experts, weak US inflation data helped the US dollar rebound from a one-month low, which put pressure on gold and silver prices. He said that gold is facing resistance Silver is struggling today at Rs 61,500 per 10 grams 78,000 per kg level. Expecting a retracement from the support levels, experts said that weak economic readings from China and the US may continue to support gold and silver prices and hence ‘buy on dips’ strategy should be maintained while investing in bullion.

On why gold and silver prices are under pressure today, market expert Sugandha Sachdeva said, “Gold prices experienced a volatile week, moving close to record highs before giving up some gains. closed marginally higher by 0.43 per cent. The key factor affecting prices was the US CPI reading, which showed a slight cooling in April on a year-on-year basis, but monthly inflation rose in line with expectations, reflecting persistent price pressures. This lowers the rate cut rate by the US Fed. At the end of the year and led to a fall in the prices of the precious metal. Additionally, the rise in the dollar index also put pressure on gold prices. “

Nirpendra Yadav, Senior Commodity Research Analyst, speaking on US and Chinese economic readings Swastik Investmart He said, ‘There is pressure on crude oil prices due to demand concerns amid fears of a recession, the effect of which is visible in inflation data from America and China. US inflation registered a month-on-month increase while year-on-year inflation declined from 5 per cent to 4.9 per cent. China’s year-on-year inflation has also seen a sharp decline. However, with US inflation remaining above the Fed’s target and indications from the Fed that higher interest rates will continue for the next few months, gold fell from an all-time high to $2,010 an ounce in Comex futures.

US debt ceiling in focus

Expecting a rally in gold and silver prices, Sugandha Sachdeva said, “While gold found resistance at important levels 61,500 per 10 gram mark, silver reverses course after testing new record high 78,292 per kg, struggling to stay above the crucial hurdle of 78,000 per kg mark. However, concerns about the US debt ceiling impasse and weak economic readings from China and the US continue to support prices, boosting safe-haven demand for gold.”

Gold, Silver Price Outlook

When asked about the price outlook for gold and silver, Sugandha Sachdeva said, “Looking forward, the precious metal prices are expected to witness sharp volatility, a key factor to watch volatility in the dollar index.” Gold is still in an uptrend, where it holds near-term support 60,500 per 10 grams, and is also above the psychological $2,000 an ounce mark in international markets, while silver found immediate support. from 71,000 69,500 per kg zone. If these key levels hold, both the metals are likely to experience a strong upside momentum, but a solid breach to the downside could dent the precious metal prices.”

Sugandha said move past 61,500 per 10 gram mark for gold, while it will close above for silver. 78,000 per kg mark will open the door 80,000 per kg mark.”

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.