This analyst is bullish on Gold for H1 of CY2022, declines seen in H2; know intraday buying strategy

Yellow metal has received support from weakness in the US Dollar index, Harshal Barot, Senior Research Consultant at Metal Focus said. While US interest rate hikes have been doing the rounds for a few months now, ECB (European Central Bank) has also indicated a hawkish stance while the Bank of England has increased rates, he said.

He said that interest rate diferentials will narrow down, going forward.

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While many are of the view that the US Central Bank could announce as many as 5 interest rate hikes, there is a section of investors in this bullion metal who feel otherwise gen that the yeild curve is noy falttening, he further said.

Then there is Russia-Ukraine tensions which are keeping away outright bearish trends in yellow metal, Barot further said.

The inflation data which is expected this week could give some clarity on inflation, Barot said. The first halsf of FY22 could prove to be bullish for gold while declines might start in the later half, he opined.

Developments in US will be key drivers for the price movement in Gold. The biggest factor will be the interest rate hike that wil be executed in March and it is being said that the increase could by by 50 basis points. The Consumer Price Index (CPI) number will also be announced shortly and the privious numbers suggest highest inflatuon rate in almost four decades in the country. Zee Business brings this report!

It is unprecedented that Gold has moved in a narrow range for a long time around Rs 48,000.      

Intraday Trade:

Manoj Jain of Prithvi Finmart said that the international prices have been hovering around USD 1800 while fresh buying happens every time Gold slips below the 48,000 mark. He was optiistic on the outlook and expects the yellow metal to hold on to USD 1800 in the international markets.

As for Indian markets, Rs 48,000 is expected to sustain, Jain said. He recommended buying at Rs 48,150 with a stop loss below Rs 48,000. He puts the target at Rs 48,500.

The ongoing tensions between Russia and Ukraine are also a strong play and will positively impact the yellow metal. Gold is considered as a haven in times of uncertainities and if tensions mount, the movement will likley see an uptick.  

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Gold futures prices have gone up by almost 2 per cent on the MCX in one month.