Gold Price Today 15-03-2021: The precious yellow metal rate at MCX (Multi Commodity Exchange) has slipped Rs 94 and hit Rs 44,785 per 10 gm today. According to the bullion experts, rising returns in the equity and Bitcoin to some extent has cannibalized the demand for gold. They said that the gold price may further slide if the Indian National Rupee (INR) further appreciates against the US dollar (USD).

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Speaking on the gold price outlook Amar Ambani, Senior President and Head of Research – Institutional Equities, YES SECURITIES said, "Gold is discernibly in the grip of a classical bear phase, which is prone to last for a long time frame. In the present environment, stocks are way better placed. Even within the commodity space, industrials appear visibly stronger, with China demand, falling inventory, global recovery prospects, as also the big EV and the renewable opportunities."

Bitcoin hitting gold demand
"Furthermore, Bitcoin to an extent has cannibalized demand for Gold, given its inherent value prop of high liquidity, secure custody and limited issuance. If speculative interest in Gold is also anything to go by, an equivalent of 200 tons of net long positions, representing 15% of open interest, have been cut. Gold holdings in SPDR Trust have also fallen to lowest level since May 2020," said Amar Ambani of YES SECURITIES.

INR vs USD impact on gold price
Ambani went on to add, "In fact, in local currency terms, Gold may depreciate even more if the Indian Rupee were to appreciate. We expect a stable to gradual appreciating INR over next four years, which means lower Gold price in Rupee terms. Our target price for Gold is $1200. This is clearly an era to place one’s faith in riskier assets. ‘Golden’ times will recur for sure in the distant future but as of today, given the better opportunities in other asset classes, the conclusion seems foregone: in the safety net dictum of Gold, we trust, but any current investment into it is more likely to rust."

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Crucial levels for gold price
Speaking on the gold price outlook in the long-term Amit Sajeja, Vice President — Research at Motilal Oswal said, "In the international market, gold price has strong support at $1,650 per ounce levels. I would advise gold investors to take positional calls when the gold price breaks $1,750 per ounce resistance and sustains above $1,760 per ounce levels. Till then 'buy on dips' is the strategy when gold price falls around $1,660-70 per ounce levels. In gold price MCX terms, one should start aggressive buying if the gold price breaks Rs 45,600 per 10 gm resistance as it would be an indication of gold price bottoming out."