gold price Futures on MCX (Multi Commodity Exchange) rose on Friday 219 per 10 grams. December Expiration Contract Expired on Friday 47,640 per 10 grams, an increase of about 0.50 percent from its previous close. According to commodity market experts, this rise in the price of the yellow metal is due to the worry of the new Covid variant, which has led to heavy selling in the global equity markets. He said the outlook for the precious metal is already bullish as global inflation picks up, US Fed’s indifferent stance on interest rate hike and the depreciation of the Indian national rupee (INR) against the US dollar (USD) is already in place. Yellow is supporting the metallic luster. He expected a sharp rise in the price of the yellow metal and advised gold investors to buy the precious metal for huge gains in the short term.
New coronavirus variant expected to propel gold price rally further; Amit Sajeja, Vice President of Commodity Research at Motilal Oswal, said, “The current rally in gold price can be attributed to the new Covid type of stress. This has led to rising global inflation in recent times and yellowing of the Indian rupee in the form of depreciation. Acted as a catalyst for the metal to shine. The US dollar is already supporting the price of gold to move north.” He said we can see the rupee going down 76 per dollar level in the next one and a half months.
Amit Sajeja of Motilal Oswal said that the gold price has strong support at $ 1760 an ounce and is currently trading at the level of $ 1780 to $ 1790 an ounce. So, the risk reward ratio for gold is around 1:3, which is very attractive. Buy gold at current levels for an immediate short-term target of $1880 an ounce. He said that in the next two to three months, the price of gold in the international market can rise to the level of $ 1915 an ounce.
Resonating with the thoughts of Amit Sajeja; Anuj Gupta, Vice President, Commodity & Currency Trade, IIFL Securities said, “Triggers like global inflation, US Fed’s indifferent stance on interest rate hike and rising industrial demand are already there to support the rally in gold prices. But, after news break omicorn virus, gold price is expected to rise sharply in the short term. On MCX, one can buy gold from 47,500 47,700 per 10 gram level for the immediate short-term target of Maintaining Stop Loss at 48,700 46,900 per 10 levels. In a month we can see gold prices touching 49,700 levels. Here gold is facing some resistance as it has formed a double top here but on breaking this resistance, we can see the price of gold going up. 52,000 per 10 grams in the next one quarter or by the end of this FY22.” Anuj Gupta of IIFL Securities said that the price of gold in the international market may go up to the level of $2000 per ounce by the end of FY22 .
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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