The gold price this week erased last week’s gains as the metal’s demand for a safe haven slowed in the midst of progress in the peace talks between Russia and Ukraine. The Multi Commodity Exchange or MCX gold price on Friday ended ₹310 per 10 gm lower at ₹51 275 levels, dipping ₹4283 per 10 gm from its latest high of ₹55 558 levels. The spot gold price on Friday fell by $ 12 per ounce and closed at 1924 levels.
According to commodity market experts, progress in the peace talks between Russia and Ukraine and the US Fed’s hawkish stance on interest rate hikes could serve as a booster dose for bears in the short term, but global inflation concerns are expected in the medium to long term. They said immediate support for gold is linked to $ 1880 to $ 1900 per ounce and has immediate resistance at $ 1934 levels.
To highlight the causes that led to the fall in gold prices worldwide; Sugandha Sachdeva, VP – Commodity & Currency Research at Religare Broking Ltd said: “Emotions were low for the metal earlier this week as Russia promised to reduce military operations around Kyiv. However, there is still much skepticism without signs of solid downsizing, which further supported the precious metal. around the psychological level of $ 1,900 per ounce, in the midst of a flight to safety.In addition, Russian President Vladimir Putin took the lead in countering Western sanctions by threatening to stop gas supplies to foreign buyers if they do not switch to payments in rubles, which has escalated tensions further. “
Regarding various triggers and their impact on the spot gold price, Sugandha Sachdeva of Religare Broking said, “There is a lot of nervousness that the US Fed’s cycle of hitting decades of high inflation could have a negative effect on US economic growth, which is supporting gold prices in Eurozone inflation also rose to a record 7.5 per cent in March, compared with a revised figure of 5.9 per cent in February, another positive trigger for prices. “Agricultural wages came close to market expectations, even as wage increases accelerated. However, this could push the Fed towards a 50 bps rate hike at the next meeting and raise the ceiling.”
On what the technical chart suggests when it comes to the spot gold price today; Vidit Garg, director of MyGoldKart said: “Gold prices have fallen this week after the crisis in Russia and Ukraine eased and corrected bond yields from the highest level in three years. But technically, until the spot gold price trades above $ 1,934 per ounce level, we can do not indicate that the bear phase is over.Each bounce back in the gold price may come as a correction of downward trends if it fails to stay above the $ 1934 levels.If the current support at $ 1880 levels violates the spot gold price, the price of the spot gold went further down to about 1860 levels. “
Advise on buying dips strategies to investors in the medium and long term; Sugandha Sachdeva of Religare Broking said: “In contrast to the weekly loss, gold experienced its biggest quarterly gain since September 2020, as the conflict between Russia and Ukraine remained at the center while rising inflation also led to increasing investment demand for gold as an Inflation Hedge. Given the mixed factors that play out, prices may witness a little more pressure, but we recommend maintaining a buy-on-dip strategy for gold, where immediate support is tied to the $ 1880-1900 per ounce zone, while the main obstacle is seen around $ 1970 per ounce. Only a convincing breach of the said resistance would lead to a significant upward rise in prices. “
Share large levels for gold buyers in the domestic market; Anuj Gupta, Vice President of IIFL Securities, said, “Today’s MCX gold price is in the support zone for ₹50,500 more ₹50,800 per 10 g levels. On the upper side it stands against resistance at ₹52,400 more ₹52,800 per 10 g zone. In the spot market, if the gold price stays above $ 1,960 levels, we can expect it to go up to $ 2,000 per ounce level and bulls can play bears in that scenario. “
Warning: The views and recommendations above are from individual analysts or brokerage firms, and not from Mint.
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