Gold prices shine bright; climb Rs 3,300 per 10 gm in 5 sessions; will the rally sustain?
The unrest can take the precious yellow metal to levels of Rs 78,500 per 10 gm in the domestic markets, while in the overseas it can be $2,750 per ounce.
Gold prices after the time correction witnessed post the Trump win are now again showing their brightness and have zoomed a substantial Rs 3,274 per 10 gm (considering Friday's day high price). Now as the geopolitical spate heightens, analysts at large remain bullish for the precious yellow metal.
Gold prices up around Rs 450 per 10 gm on MCX
On the MCX, gold prices zoomed by around Rs 450 per 10 gm to Rs 77,220 per 10 gm. The recent gains are spurred amid escalating geo-political tensions between Ukraine and Russia.
Spot gold
Spot gold in the international markets traded with substantial gains of 0.7 per cent at $2,687.4 per ounce.
COMEX Gold
COMEX Gold also traded with gains of 0.6 per cent at $2,690.4 per ounce.
Geopolitical tensions boosts safe haven demand
Gold extended its gains after the Russia fired long distance missile on Ukraine. Heightened tensions between Russia-Ukraine increased safe-haven demand for gold.
US jobless claim reduce the extent of gains
However, the U.S. jobless claims decline in the last week to 2,13,000 against expected claims of 2,20,000 limits gains of precious metals.
Dollar index gains fail to decrease sheen for now
The US dollar is strong, making gold more attractive to investors, says Dr. Renisha said.
Lower chances of US rate cut by the Fed
Dr. Chainani- Head Research - Augmont - Gold For All remarked that it's becoming less likely that the US Federal Reserve will lower interest rates in December. This is another factor supporting gold prices.
To gain ground being in oversold territoty now
The expert notes that Gold has retraced 50% of this rally from Rs 67500 to Rs 80000, and prices have shifted from an overbought zone to an oversold zone. Gold is expected to continue rebounding up to Rs 76500 and Rs 77400.
Support and resistance level for gold
Manoj Jain- Director- India Nivesh held that Gold has support at $2658-2644, while resistance at $2688-2700 per troy ounce and silver has support at $30.70-30.35, while resistance is at $31.20-31.50 per troy ounce in today’s session. At MCX, gold is having support at 76400-76140 and resistance at 76920-77200.
Ukraine-Russia tension to support gold prices in short term (year end 2024)
Ajay Kedia- Director- Kedia Advisory held that the yellow metal amid the crisis can scale to Rs 78,500 per 10 gm and internationally can climb to $2,750 per ounce by year end.