Gold Price Today: Multi Commodity Exchange or MCX gold rate on Friday plunged ??32 per 10 g and closed at ??48 120 levels, logging ??483 slides in one week. This February drop in the gold price futures contract came despite rising Omicron cases, escalating crude oil prices, surging concerns about global inflation, and more.
According to commodity market experts, this drop in the price of gold is due to the weakness of the US dollar (USD) against the Indian national rupee (INR). They said that the gain of the rupee against the dollar had neutralized the risks of the increase in the price of gold, otherwise the general sentiment for the MCX gold rate is still bullish.
Main triggers for the price of gold today
Bullion experts said the price of gold in the spot market was trading in a range of $ 1,760 to $ 1,835 per ounce and is expected to move within that range in the coming week as well. They said the MCX gold rate is also expected to rise ??48,000 to ??48,700 per 10g range short term until there is a break on either side of the range in the spot market. They said the gain of the Indian rupee against the US dollar will not be sustained for long as the rise in the price of crude oil is expected to push global inflation, which may finally help gold shine in the near term. They advised gold investors to maintain the buy-on-bearish strategy and strictly suggested to avoid any idea of a sell-upside as gold could break through the hurdle of $ 1,835 per ounce in the short term. and hit $ 1,880 an ounce in the short term.
The price of crude oil will fuel the gold rate in the short term
Speaking on the outlook for gold prices; Anuj Gupta, Vice President of Commodities and Currency Trading at IIFL Securities, said: “The MCX gold rate fell this week as the Indian rupee appreciated against the US dollar in the market. Forex. However, this rise of the rupee against the dollar will not last long. as the price of crude oil has risen sharply, which may fuel concerns about global inflation. Apart from that, the rise in cases of Omicron in India and abroad is also favorable to the rise in the price of gold in the short term. Thus, the overall sentiment for the price of gold is positive and one should maintain the buying strategy if it falls. “
Advise gold investors to keep an eye on the movement of yellow metals in the spot market; Amit Sajeja, Vice President of Commodity and Currency Research at Motilalm Oswal, said: “In the short term, the price of gold is tied to a range with a positive bias. It is currently trading in a range of $ 1760 to $ 1835 an ounce where one should buy gold around $ 1780. per ounce and book profit when the gold rate is around $ 1,820 to $ 1,825 per ounce. ”
Amit Sajeja of Motilal Oswal added that in the short term this range should remain intact and one should continue to maintain the buy-on-dip strategy until either side of this range is not exceeded.
Short-term MCX gold rate forecast
Anuj Gupta of IIFL Securities said the general sentiment of the gold price is positive and said MCX gold rates could go up to ??48,700 per 10g level in the short term, citing “gold investors can buy gold at ??48,000 levels for short-term goals of ??48,500 and ??48,700 by 10g levels while maintaining the stop loss at ??47,600 in 10g levels. He said the price of gold in the spot market is expected to hit $ 1,880 an ounce once it breaks the upper hurdle of $ 1,835. In this case, the price of gold on MCX could reach ??49,300 to ??49,500 levels, concluded Anuj Gupta of IIFL Securities.
Warning: The opinions and recommendations expressed above are those of individual analysts or brokerage firms, not Mint.
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