Gold Price Today 18-03-2021: Golden opportunity for gold buyers till yellow metal is below this rate

Gold Price Today 18-03-2021: Gold price today has rose Rs 27 per 10 gm at the Multi Commodity Exchange (MCX) and hit Rs 44,840 levels. According to bullions experts, gold MCX rate will remain bearish till it is trading below Rs 45,600. They said this is the best time for gold investors to accumulate on every dips as we may witness fresh rally in yellow metal price once it breaks this Rs 45,600 per 10 gm levels. They said that one should keep an eye on other factors like equity market yield, Cryptocurency returns and bond market yield as their higher returns are one fo the major reason for gold investors going for redemption from gold investments and diverting their money to equity, cryptocurrency and other options.

Speaking on the gold price outlook Amit Sajeja, Vice President — Research at Motilal Oswal said, "Gold price at MCX may witness some fresh rally once it breaks Rs 45,600 per 10 gm levels. Till then gold investors should keep following the buy on dips strategy as gold is range bound between $1650 per ounce to $1730 per ounce levels. Gold price will get fresh upside momentun once it manages to break $1750 per ounce resistance and sustains above $1760 per ounce mark."

Expecting gold price to remain bearish for next few months 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."

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On gold investors diverting fund to Bitcoins Amar Ambani of YES SECURITIES said, "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."

Ambani said that the appreciating Indian Natioan Rupee (INR) against the US Dollar (USD) will also hit gold price and in the coming time gold price may remain bearish for this reason too. He said that he was expecting  a stable to gradual appreciating INR over next four years, which means lower Gold price in Rupee terms.