Gold Price Today 17-03-2021: Good news for buyers! Yellow metal turns cheaper; in gold we trust? Know here

Gold Price Today 17-03-2021: For those who are planning to buy gold coins, jewellery or any other precious metals, there is a piece of good news for them. Gold price today has become cheaper by Rs 98 per 10 gm at the Multi Commodity Exchange (MCX) and hit Rs 44,802 per 10 gm. According to the bullion experts, the gold price is expected to remain bearish till it is trading below Rs 45,600 per 10 gm at MCX. They said that higher yield in equity markets and rising Cryptocurrency returns are some of the major reasons for investors fishing out money from gold and diverting it to other investments are the major reason for this bearish trend in the precious metal.

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Speaking on the gold price forecast 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 bites gold investment
"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.

Rupee vs Dollar deviation 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 'in Gold we trust, but any current investment into it is more likely to rust."

Important gold price levels that one must remember

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."