The price of gold has reached an all-time high due to the bank crisis in America. Sell, Hold or Buy?

According to bullion market experts, gold rates are today comfortably placed above the crucial resistance of $1,930 an ounce and is all set to touch $2,000 an ounce in the international market. Gold prices have found support on MCX 57,500 more 56,800 level and the yellow metal is ready to touch The outlook for the precious bullion metal is still bullish as Rs 60,000 per 10 grams levels in the near term.

Market expert Sugandha Sachdeva on reasons for the bullish trend in gold prices today said, “Amidst turmoil due to troubled banks in US and sharp fall in shares of Swiss banking giant- Credit Suisse, gold prices gained ground. Investors are taking refuge in gold as their safe haven position and store of value.”

US dollar correction

On the impact of the ECB rate hike, Sugandha Sachdeva said, “The ECB surprised the markets with a rate hike of 50 bps, largely ignoring the impact of higher rates. banking system This led to a sharp jump in the Euro against the US Dollar, while gold prices strengthened. The new economic scenario underscored weaknesses in the financial system while supporting interest in precious metals, where silver also rose in tandem with gold, posting huge gains of around 9.22 per cent for the week.

gold receives safe haven appeal

Anuj Gupta, Vice President – Research at IIFL Securities Said, “Due to the escalating bank crisis in the US, the dollar index has declined. This has led to a fall in equities, treasury yields, bonds and other Property under pressure. Hence, investors are pulling money out of these assets and investing in gold to be safe from the current turmoil.”

US Fed is in focus

Anuj Gupta of IIFL Securities said that a lot will depend on the outcome of the US Fed’s FOMC meeting scheduled from March 21 to March 22, 2023 as a rate hike by the US Fed may lead to further upside in gold prices.

Expecting the US Fed to turn dovish, Sugandha Sachdeva said the collapse of three major US banks – Silicon Valley Bank, Signature Bank and First Republic Bank had raised hopes that the Fed could turn dovish and address the financial concerns of the market. To do can withdraw the aggressor vigorously. Tension.

Nirpendra Yadav, Senior Commodity Research Analyst Swastik Investmart said, “Any pause in the Fed’s rate-hike cycle would benefit gold, boosting demand for gold against the dollar, and also reducing the opportunity cost of holding non-yielding assets.” Chances are.” As long as inflation remains stable, monetary policy remains accommodative. Investors are advised to remain cautious ahead of the US Fed meeting, in which it is unclear by how much the interest rate hike will be.”

gold price outlook

Speaking on gold price outlook for the near term, Sugandha Sachdeva said, “The outlook for the next week turned bullish in the early part of the week, with gold prices comfortably crossing the key hurdle of $1,930 per ounce.” Signals continuation of momentum. Even though volatile volatility will be seen with focus on highly anticipated Fed meeting outcome, gold looks ready to test levels of approx. 60,000 per 10 grams and $2,000 per ounce in the near term. Key support for the precious metal is pegged at 57,500 per 10 grams and onwards 56,800 per 10 gram mark.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before taking any Investment Decision.