Gold Rate Today: Just ahead of the wedding season in India, the price of gold on the Multi Commodity Exchange (MCX) ended at 202/10 grams more 52,099 levels on Friday. Spot gold also closed 0.77 per cent higher at $1945 an ounce. With this sharp rise in the last trading session of the week, MCX gold rate managed to register a rise of around 0.90 per cent during the week.
According to commodity market experts, gold price Has been stuck in a consolidation zone in recent weeks as expectations of an aggressive interest rate hike trajectory by the US Fed kept an upward lid, but the Russia-Ukraine war continues to support ‘safe-haven demand’. precious metal. He added that the beginning of the wedding season can act as a catalyst for the demand for the precious metal and added that the price of gold on MCX may rise. 53,500 per 10 grams in the short run and 56,000 level in the medium term.
Asking gold investors to keep an eye on the developments in the US economy; Sugandha Sachdeva, VP-Commodity & Currency Research at Religare Broking Ltd., said, “The recent minutes of the Fed’s March meeting have shown that members are likely to expect an accelerated reduction in central bank balances in the coming months as well. Rising inflation remains a major concern. However, the US economy will be hit hardest by a rapid pace of monetary policy tightening, and will also derail global economic growth. Any downside risk to growth will drive gold prices down over the long-term perspective.”
on the dynamics that will drive the price of gold in the future; Sugandha Sachdeva of Religare Broking said, “There is some momentum towards gold in the coming sessions. To start with the geopolitical developments, the US and Europe are planning new sanctions against Russia, which will further add to the tension. Global inflationary pressures prolong the increase. This may well attract safe-haven demand for gold. Other key triggers to watch would be the dollar index’s momentum which respites from the psychological 100 points Looks to be making its way. To spur buying interest in gold.”
“Furthermore, strength in the dollar index, which is hovering near 100, is one of the key reasons for the precious metal’s underperformance. In addition, the US 10-year Treasury yield edged up to a three-year high, pushing the metal But the pressure increased.”
Triggers that can decide the price of gold in the near future; Anuj Gupta, Vice President – IIFL Securities said, “US data for retail sales and inflation will be a significant trigger for the yellow metal price. Also, the COVID situation in China needs to be monitored. The lockdown has been done. imposed in Shanghai and any further spread of the pandemic may not be good news for the global economy as China is the second largest economy in the world.” However, he added that the beginning of the wedding season in India will continue to be a big domestic factor for the yellow metal as demand is expected to pick up this wedding season.
Speaking on the outlook for gold price in the spot market, Anuj Gupta of IIFL Securities said, “Spot gold price is facing resistance at the level of $1950 to $1960 level while its immediate support is at the level of $1900 However, this strong support is placed at the level of $1870 per ounce. If the previous metal manages to break its immediate hurdle and stays above the $1960 level, it may move towards the $2000 level in the near term. might.”
Sugandha Sachdeva, Religare Broking said, “Looking at the current macro-economic environment, gold is looking positive but not very bullish. Negative support is expected for the metal. 48,800 per 10 grams or $1840 per ounce, while it may move towards higher levels on an upside 53,500 per 10 grams initially and then 56,000 per 10 grams or $2075 per ounce level from a medium-term perspective.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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