Gold price near 4-month low. Should we buy?
Gold price on Multi Commodity Exchange (MCX) hit 4-month low after falling below ??46,000 in 10 g levels. At MCX, gold futures have fallen almost 1.3% in the last three trading sessions, while the price of silver has fallen more than 1.5% during this period. period. According to commodities experts, this drop in the price of the yellow metal is due to the strength of the US dollar and US employment data. However, they said the international market price of gold is enjoying strong support at $ 1,680 per ounce while it is at MCX, ??44,700 to ??45,300 per 10g is a good accumulation zone. From a long-term perspective, the price of gold is positive and the buying strategy should be maintained in the event of a dip until the price of gold remains above. ??44,700 per 10 g at MCX.
Highlighting the triggers that will once again fuel the rise in gold prices; Sugandha Sachdeva, vice president of commodities and currency research at Religare Broking Ltd, said: “Growing cases of Covid-19, particularly the Delta variant, in China and the United States have fueled fears derail the global economic recovery. Apart from this, due to high commodity prices, concerns about global inflation persist and equity investors may soon start to feel the stretch in valuations as global indices are trading near record highs. . This could encourage investors to turn to gold to diversify their portfolios and as a hedge against inflation. “
At his suggestion to gold investors; Sugandha Sachdeva of Religare Broking said: “In the near term, there may be a further drop in gold due to a strong recovery in the US labor market and amid concerns that the US Fed will start to cut its pandemic-era stimulus earlier than expected, which supported the greenback. Nonetheless, the outlook for gold over the long term remains positive. The level of $ 1,680 an ounce in the international market is a sacrosanct cushion zone for gold and has held up well over the past six months. At MCX, ??44,700 to ??45,300 per 10g is a good accumulation zone for long term investors. One should start buying as the yellow metal enters this range as the precious metal is expected to change course after this correction in time and price over the next few months. “
Emphasizing the reason for the sharp correction in the price of gold; Anuj Gupta, Vice President of Commodities and Currency Trading at IIFL Securities, said, “We have seen a strong correction in the price of gold due to the strength of the US dollar and robust economic data from the United States. United. In fact, the US dollar is hovering at 4 month highs; However, the price of gold hovers at 4 month lows. From a short-term perspective, gold may trade with a negative bias, but the increase in the delta variant may dampen the sharp correction in gold prices. The long term trend still looks positive for the yellow metal and investors are advised to maintain the buy strategy on a downside until gold exceeds $ 1680 per ounce in the international market. “
On his suggestion to gold investors in the current market scenario; Anuj Gupta of IIFL Securities said, “The price of gold enjoys strong support at $ 1680 per ounce in international markets, while at MCX it enjoys strong support at ??45,300. Thus, one can continue to buy until the precious metal is above this mark. In a week to two weeks, the price of gold is expected to remain in a range between ??45,300 to ??46,700 per 10 g at MCX. Thus, the price of gold is approaching ??45,300 should be seen as an opportunity to buy to keep the stop loss below long term ??44,700. The immediate target of the yellow metal would be ??46,700 whereas in the next two to three months the price of MCX gold could rise to ??48,500 to ??49,000 in 10g levels.
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