Gold price scales ₹47,000. More gains seen in the precious metal
Premium- Second wave of coronavirus, inflation fears, some softness in US bond yields have helped support gold
Gold prices continues to recover in Indian markets. On MCX, it rose ₹562 to close at ₹47,170 per 10 gm at Multi Commodity Exchange (MCX). In international market, gold price also crossed key resistance level of $1764 per ounce. The landing price of gold is around ₹1200 to ₹1500 higher than MCX price. Gold price in Delhi is at ₹48,255 per 10 gram.
After hitting a year-low of ₹44,000 earlier this month, gold has rebounded in domestic markets. According to commodity experts, gold price is rising due to the rising fear of second wave of Coronavirus spread, depreciating Indian National Rupee (INR) against the US Dollar (USD), rising crude oil prices fueling fears of global inflation and some softness in US yields. They said that by end of May we can expect gold price at MCX to go up to ₹48,500 per 10 gm levels.
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Speaking on the gold price forecast Anuj Gupta, Vice President — Commodities & Currency Trade at IIFL Securities said, "Major reason for gold price rally is rising fear of second wave of Coronavirus. Apart from this, global crude oil prices are rising and in coming times too, there is no hope of any ease in the crude oil price. So, the global inflation is expected to continue on the higher side, which is also supportive for the gold price rise."
INR vs USD
Anuj Gupta of IIFL Securities went on to add that Indian National Rupee (INR) has also gone down these days and hit its 10-month low. Gupta said that rupee may continue to go down further and hit 76 per dollar in next one to two months. So, rise in precious yellow metal is expected to continue and by end of May, we can expect the gold price to go up to ₹48,500 per 10 gm levels.
Highlighting the important levels in gold price Amit Sajeja, Vice President — Research at Motilal Oswal said, "Gold price had a major hurdle at $1,745 to $1,750 per ounce levels. Since, the bullion metal has broken this hurdle, the next hurdle for it is $1,800 to $1,820 per ounce. As overall outlook for gold is positive, my suggestion to gold investors is to keep accumulating on every dips as there can be some profit booking taking place as well."
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