The price of gold has jumped today due to the dollar index coming down to a week low. should you buy

Speaking on the gold price outlook, Amit Sajeja, Vice President – Research, Motilal Oswal said, “Gold prices have risen as the US dollar rate has softened today. Dollar index slipped from a record high of 110.80 to 108.86 level. This is helping the precious metal to move higher. Spot gold is expected to trade in the range of $1680 to $1755 an ounce in the near term, while MCS gold may trade in the mid-range from 49,800 51,200 per 10 grams range. However, the overall trend is positive and investors are advised to keep buying on the dips strategy and avoid taking short positions.

Due to the fall in the US dollar rate today, Amit Sajeja of Motilal Oswal said that the ECB has unexpectedly increased the interest rate by 75 basis points thereby triggering profit-booking in the US dollar.

“At current levels, the price of gold has bottomed out in the short-term,” said Michael Langford, director of corporate advisory firm Airguide, “on views of central bank strength from continuing job claims and employment numbers materially. will have an effect.” underlying economy.”

Thursday’s data showed unemployment benefits claims fell in the United States last week, highlighting the strength of the labor market and bolstering hopes of the Fed’s aggressive rate hike. The Fed is “strongly committed” to fighting inflation and hopes that controlling rising prices can be done without the “too much social cost” involved in prior campaigns, Fed Chair Jerome Powell said.

“Gold is essentially oscillating between the $1,685-$1,680 and $1,725-$1,720 digest ranges,” said DailyFX currency strategist Ilya Spivak. Higher interest rates increase the opportunity cost of holding non-yielding bullion and boost the dollar.

(with inputs from Reuters)

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

post your comment
first article