Gold price today inched close to Rs 47,500 per 10 gm (around 0.2 per cent higher from its yesterday’s close), which is a mere Rs 400 away from it’s all-time high of Rs 47,918 per 10 gm.
Gold price today inched close to Rs 47,500 per 10 gm (around 0.2 per cent higher from its yesterday’s close), which is a mere Rs 400 away from it’s all-time high of Rs 47,918 per 10 gm. According to commodity experts, the yellow metal is expected to remain investors’ haven on the fear created over a possible second wave of Coronavirus, weak US economic outlook by the Federal Reserve and sliding rupee against the US dollar. They said that the precious metal is expected to hit Rs 50,000 per 10 gm mark in the next one and half months to two months as these triggers are expected to remain in this period.
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Speaking on the gold price outlook Amit Sajeja, Associate Vice President at Motilal Oswal said, “Rupee has fallen sharply against the US dollar in the last one week and it may soon hit 77 per dollar levels that is enough to fuel gold price up to Rs 48,000 per 10 gm in immediate term. Apart from this, escalating China-India border tension, Fed outlook for weak US economy will continue to support gold price rally.’ Sajeja said that in the medium term (next two months) gold price is expected to hit Rs 50,000 per 10 gm.
Speaking on whether one can still buy gold at current levels, Sunil Kumar Katke, Head – Commodities & Currency at Axis Securities said, “Gold price has made strong base line at Rs 47,000 per 10 gm levels at MCX while Comex gold has made its baseline at $1,700 per ounce. So, I would like to advise investors to buy gold at current levels for the short-term target of Rs 48,000 to Rs 48,500 maintaining the stop loss at 47,150 levels.” Asked about the triggers supporting the gold price Katke said that the second wave of Coronavirus and weak outlook for the US economy predicted by the Federal Reserve is the major trigger for gold price rally in coming days.
