Gold Rate Today: The Multi Commodity Exchange (MCX) gold rate was tested for its June 2022 futures contract, as peace efforts in the Russo-Ukraine war failed and US inflation climbed to a new 40-year high. 53,000 per 10 grams level on Friday. However, the price of the yellow metal failed to stay above this psychological level and closed at 52,991 per 10 gram mark on Friday. The spot price of gold closed at $1974 an ounce, giving a breakout at the level of $1970 at closing.
According to commodity market experts, several factors like US inflation, far-flung calm in Russia-Ukraine crisis etc. are expected to continue further and hence gold price in the spot market to the level of $ 2020 an ounce in the near term. May go. He said that in the domestic market mcx gold price can touch from 53,500 53,800 per 10 grams in the immediate short term.
Speaking on the reasons for the rise in the price of gold for the second consecutive week; Sugandha Sachdeva, Vice President, Commodity and Currency Research at Religare Broking Ltd. said, “Gold prices continue to rise for the second consecutive week due to the Russia-Ukraine conflict, as peace efforts between the two countries falter. In addition, increased Inflation reports are weighing on market sentiment. US annual CPI rose to 8.5 per cent in March, a new 40-year record. Wholesale prices as measured by the PPI came in at 11.2 per cent year-on-year. UK’s March inflation print also reflected a global trend of higher inflation, with headline CPI at 30-year high. This has led to strong buying interest in gold as investors seek inflation protection through hard assets.”
The Religare Broking expert further said that crude oil and natural gas prices have also risen significantly this week amid prospects of fresh sanctions on Russia, which has raised global inflation expectations. She said that sustained supply crunch, super-sized inflation and geopolitics have created a huge cloud of uncertainty, and are burning gold’s safe-haven appeal. In fact, gold continues to rise despite an influx in the US dollar, which is considered a store of value in times of geopolitical crisis.
Speaking on domestic triggers that could push up the demand for gold price; Anuj Gupta, Vice President – IIFL Securities said, “Wedding season has begun in India and it is going to act as a major domestic trigger for gold price as the demand for physical gold in the month of April to June Besides this, spot price of gold has given a fresh breakout at $1970 level and other previous triggers like Russia-Ukraine conflict and global inflation are still present. Hence, I need to know the price of gold in the international market. It is expected to rise to the level of $ 2000 per ounce by 2020. While in the domestic market the precious metal may go up to from 53,500 53,800 per 10 grams level in the immediate short term.”
Anuj Gupta of IIFL Securities said gold investors who have a position in the precious metal should maintain the yellow metal and book profits at $2000 to $2020 levels, while for short term investors he saw any downside as new. Advised to see it as an opportunity. ,
US inflation has risen over the past year at its fastest pace in more than 40 years, with the costs of food, gasoline, housing and other necessities squeezing American consumers and eroding the wage growth many people received.
The US Labor Department said on Tuesday that its CPI (consumer price index) jumped 8.5 percent in March from 12 months earlier, the fastest year-on-year increase since 1981. The price bottleneck is driven by strong consumer demand across the supply chain. And the disruption to global food and energy markets was made worse by Russia’s war against Ukraine. From February to March, inflation rose 1.2 percent, the biggest month-on-month jump since 2005. Gasoline prices offset that increase by more than half.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.