Gold price today jumps again! Experts predict fresh all-time high, recommend buy

Gold price today regained the psychological Rs 47,000-mark on shrinking global economic projection by the US Federal Reserve. Rate rose 1.1 per cent to Rs 47,140 per 10 gm as weakness in the US dollar (USD) and low bond yields are also expected to help the rally in coming few trade sessions. According to the commodities experts, price is expected to hit $1,750 per ounce in the international markets while at the Multi Commodity Exchange (MCX), they expect an immediate target of Rs 47,600 per 10 gm while short-term target is Rs 48,200 per 10 gm. They also said that in next week, price in international market may break $1,750 per ounce levels as people are worried about the second wave of Coronavirus spread.

Highlighting the triggers involved, Anuj Gupta, Deputy Vice President — Commodities & Currencies at Angel Broking said, “Today, Gold price is trading on a positive note as the US FED kept interest rates unchanged. Along with the rate decision, it projected that the economy will shrink 6.5 per cent in 2020, and this projection supports the safe haven demand for Gold. We are recommending buying Gold. For intraday perspective, traders can buy at 47,000 levels, with the stop-loss of Rs 46,750, for the target of Rs 47,600 levels. Weakness in dollar and low bond yields may also support gold prices. In the international market, it may test $1750 per ounce levels soon.”

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Relating this price-rise to fears of a second wave of Coronavirus, Amit Sajeja, Associate Vice President at Motilal Oswal said, "People are worried about the second wave of Coronavirus spread and US Fed chief's projection for shrinking economy has further fancied the chances of gold price breaking the $1,750 per ounce levels in the international markets to hit its fresh all-time high of $1,790 per ounce." 

Asked about the gold price at MCX, especially if it breaks $1,750 per ounce resistance level, Sajeja said that in the short-term, it is expected to hit Rs 48,200 per 10 gm there.