Today’s gold price: The gold price has fallen to multi-month lows. Is it time to invest in the dip?


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Precious metals that rallied in half of the current calendar have fallen off the pace. These precious metals have suffered deep losses over the past few weeks and are now barely at the psychological peak.

Market experts believe that the attractiveness of safe-haven metals has been diminished by the inflationary pressures and interest rate increases.

Silver fell below Rs 55,000 on Friday. goldThe mark of Rs 50,500 was not reached. Market analysts still believe in precious metals, even though they are becoming less attractive.

Prithviraj Kothari (Managing Director, RiddhiSiddhibullions) stated that monetary tightening at the US Federal Reserve is affecting gold prices. Gold prices have been trading at multimonth lows recently.

He stated that rising inflation and multidecade-high CPI numbers for approximately one year are serious concerns, which has led to aggressive Fed rate hikes. “But, rising recession fears are supportive. bullionIn the long term.”

A stronger dollar has always been a hindrance for commodities, especially gold. Its price is high, making it expensive for other currencies users.

NS Ramaswamy Head of Commodities Securities added that gold is heavily weighing in on the inverse correlation to dollar strengthening. It has been neglecting the direct correlation between high hot inflation.”

The US Federal Reserve will continue to raise the rate by 75-100 basis points, according to market participants.

Anuj Gupta Vice President- Commodities

According to analysts, silver and gold prices sank sharply last week in line with expectations. This was due to the fact that the fear of recession had also reduced the demand for yellow metals.

Ventura Securities’ Ramaswamy believes that the dollar index is near its peak and expects money back to gold. He stated that the Dollar index is currently in overbought territory. A technical pullback can be expected.

Participants in the market believe that the Fed would concentrate on US economic concerns and stop rate rises in Q4CY22 or Q1CY23. They also want to reduce treasury yields. The rising fund flow would allow bullion’s rally to take place.

Kothari recommended that investors continue to invest in gold via SIP, and take advantage of the declining cost to lower their average price. In the second half 2022, he sees silver at Rs 64,000/kg and gold at Rs 54,000 for 10 grams.

Ramaswamy is moderately bullish in the medium term on bullion.

“Silver has performed poorly in comparison to gold due to the decline of interest. He said that silver will lead gold once the yellow metallic has reached a bottom. “One should purchase silver once it has maintained its support levels of Rs 55.500 or Rs 53.900.”

Gupta, IIFL Securities, suggested selling gold at a target of Rs 49.600 and silver at a target of Rs 53.500. You can keep your stop loss at Rs 51,300 or Rs 59,000, respectively.

(Disclaimer – The opinions, recommendations, and suggestions of the experts are theirs. These views do not represent those of Economic Times.


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