Best News Network

Gold price inches close to ₹53,000. Should you buy, sell or hold?

Gold price today: On account of floundering peace efforts in Russia-Ukraine war and US inflation climbing to fresh 40 years high, Multi Commodity Exchange (MCX) gold rate for June 2022 future contract tested 53,000 per 10 gm levels on Friday. However, the yellow metal price failed to sustain above this psychological level and closed at 52,991 per 10 gm mark on Friday. Spot gold price closed at $1974 per ounce levels, giving breakout at $1970 levels on closing basis.

According to commodity market experts, a slew of factors like US inflation, far flung peace in Russia-Ukraine crisis, etc. are expected to continue further and hence gold price may go up to $2020 per ounce levels in spot market in near term. They said that in domestic market, MCX gold price may touch 53,500 to 53,800 per 10 gm in immediate short term.

Speaking on the reasons for rise in gold price for second consecutive week; Sugandha Sachdeva, VP — Commodity & Currency Research at Religare Broking Ltd said, “Gold prices have continued on an upwards journey for the second consecutive week, thriving due to the ongoing Russia-Ukraine conflict, as the peace efforts between the two countries are floundering. Apart from that, elevated inflation reports are roiling the market sentiments. The US annual CPI accelerated to 8.5 per cent in March, to hit a fresh 40-year record. Wholesale prices measured by PPI came in at an 11.2 per cent annual rate. UK’s March inflation print also reflected a global trend of higher inflation, wherein the headline CPI is at a 30-year high. This has led to strong buying interest in gold as investors seek inflation protection through hard assets.”

The Religare Broking expert went on to add that crude oil and natural gas prices have also soared significantly this week amid prospects of new sanctions on Russia, which have exacerbated global inflation expectations. She said that continuing supply constraints, super-sized inflation and geopolitics have created a big cloud of uncertainty, and are burnishing gold’s safe-haven appeal. Indeed, gold has continued to rally despite the inflows seen in the US dollar, considered a store of value during times of geopolitical crisis.

Speaking on the domestic trigger that may fuel gold price demand; Anuj Gupta, Vice President — Research at IIFL Securities said, “Wedding season in India has begun and it is going to work as major domestic trigger for gold price as demand for physical gold is expected to soar during the month of April to June. Apart from this, spot gold price has given fresh breakout at $1970 levels and other previous triggers like Russia-Ukraine conflict and global inflation are still existing. So, I am expecting gold price to further escalate up to $2000 to 2020 per ounce levels in international market whereas in domestic market, the precious metal may go up to 53,500 to 53,800 per 10 gm levels in immediate short term.”

Anuj Gupta of IIFL Securities said that those gold investors, who have position in the precious metal should continue to hold the yellow metal and book profit around $2000 to $2020 levels whereas for short term investors he advised to look at any dip as fresh opportunity for buy.

US inflation shot up over the past year at its fastest pace in more than 40 years, with costs for food, gasoline, housing and other necessities squeezing American consumers and wiping out the pay raises that many people have received.

The US Labor Department reported on Tuesday that its CPI (consumer price index) jumped 8.5 per cent in March from 12 months earlier, the sharpest year-over-year increase since 1981. Prices have been driven up by bottlenecked supply chains, robust consumer demand and disruptions to global food and energy markets worsened by Russia’s war against Ukraine. From February to March, inflation rose 1.2 per cent, the biggest month-to-month jump since 2005. Gasoline prices drove more than half that increase.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.