Gold price target Rs 50,000 - start buying says expert

Gold price target 06-04-2021: Anand Rathi Securities Fundamental Analyst Jigar Trivedi says that MCX gold is likely to appreciate during intraday as expectation of a spike in the US inflation has underpinned the metal. He said that yesterday, MCX gold faltered marginally by approximately 0.15% for the June contract and Silver declined by nearly 0.9%.

Anand Rathi said that the ISM Services PMI jumped to 63.7 in March from 55.3 in February, well above forecasts of 59. The reading pointed to the strongest growth in services activity on record due to the lifting of coronavirus pandemic-related restrictions. The market has shrugged off the economic data. However, the dollar slumped to an almost two-week low versus a basket of rival currencies, while U.S. Treasury yields also fell as investors paused recent selling of government bonds.

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Anand Rathi highlighted that U.S. President Joe Biden defended his proposal to raise corporate taxes to help pay for his infrastructure spending plans, saying he was not worried the hike would harm the economy and that there was no evidence it would drive business abroad.

Jigar said that in the absence of any major economic data, focus would be on the dollar index for further cues in the intraday. From investment point of view, Anand Rathi is of the opinion that the current fall of approx 17-18% in gold price is a good buying opportunity. According to the government sources, India's March imports have risen multi fold due to cut in tax and correction in price. 

Anand Rathi expects a rise in jewellery buying in coming weeks. Also these are the best levels that one should start accumulating the gold for a year end target of Rs 50000.