Gold price has reached record high on MCX. Will it scale a new peak in the global market?

According to commodity market According to experts, these 5 reasons can be the reason for the rise in gold and silver prices in the commodity market today – weakness in the US dollar rate, bad US data, increase in interest rates by the US Fed, economic uncertainty and rising crude oil prices. prices. He has strong support to gold prices in India 59,500 levels, while in the international market the yellow metal took strong support near $2,010 levels. Similarly, silver today took strong support at $23 an ounce in the international market, while in the domestic market, the white metal took strong support. 70,000 per kg level.

Anuj Gupta, Vice President – Research at Why gold and silver rates are increasing today IIFL Securities “Gold and Silver prices are moving today due to these 5 fundamental reasons – Fall in US Dollar, Bad US data, Hike in interest rates, Fear of economic slowdown and rise in oil prices across the world,” said.

US dollar weakness

“The primary reason for the rally in precious metals is the soft dollar index. The dollar index has fallen to a 2-month low as there is widespread belief that the Fed may not only stop but start reducing rates by the end of 2023. Cama Being a safe haven, and often attracts investor interest in times of uncertainty and recession, said Colin Shah, MD, Jewellery.

Shah further said that weak economic data such as manufacturing activity and the job market are showing signs of a recession in the US economy. These developments will restrict the Fed’s ability to tighten rates and liquidity.

weak US data

“US JOLTS job opening data that was lower than expected indicated a cooling labor market in the US and factory orders also fell more than expected, raising hopes that the Fed will halt its aggressive rate hike cycle very soon Besides, the dollar slipped towards the index. Market expert Sugandha Sachdeva said, “acting as a tailwind for the precious metals,” at a two-month low.

New peak in sight?

Sharing the strategy for gold investors, Sugandha Sachdeva said, “As of now, buying on some downside seems prudent while keeping a close watch on the support. 60,200 per 10 grams as prices move towards $2,050 an ounce or 61,700 per 10 grams in the short run. The yellow metal also eyes the previous high of $2,075 per ounce tested in 2020.

“Silver was also in limelight as it witnessed a strong gain of 3.52 per cent and moved near $25 an ounce. The white metal looks set to move higher. 76,200 per kg initially and then Rs. 78,000 per kg mark. a breakout above the critical level of 78,000 per kg is expected to move up from 85,000 88,000 per kg zone in the long run,” said Sugandha Sachdeva.

Anuj Gupta of IIFL Securities said that gold prices have strong support 59,500 on MCX while in the international market it has found strong support near $2,010 an ounce. He said that in the domestic market, silver today took support near $23 per bar, while the metal took strong support. 70,000 per kg level.

Anuj Gupta concluded, “Both gold and silver are looking positive on the chart patterns and we see both bullion holding highs of $2,075 (gold made in August 2020) and $49.83 per ounce (which made in 2011).” Can look to cross higher levels.”

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.