The price of gold on MCX (Multi Commodity Exchange or MCX gold rate) fell by Rs 310 per 10 grams to close at Rs 51,275 on Friday. This is a fall of Rs 4283 per 10 grams from the recent high of Rs 55,558 in gold. On Friday, spot gold had fallen by $ 12 an ounce to close at the level of 1924.
Gold Price Today: Safe investment gold has lost its last week’s gains amid progress of peace talks in Russia-Ukraine. There is a fall in the price of gold.
On the Multi Commodity Exchange or MCX, the price of gold (Multi Commodity Exchange or MCX gold rate) declined by Rs 310 per 10 grams to close at Rs 51,275 on Friday.
This is a fall of Rs 4283 per 10 grams from the recent high of Rs 55,558 in gold. On Friday, spot gold had fallen by $ 12 an ounce to close at the level of 1924.
According to commodity market experts, progress in Russia-Ukraine peace talks and US Fed’s tough stance on interest rate hike may act as a booster dose for bears in the near future.
But global inflation concerns are likely to remain present in the medium to long term. He said immediate support for gold is pegged at $1880 to $1,900 an ounce. There is also immediate resistance at the $1934 level.
Fluctuations in Gold Rate
Commenting on the reasons for the fall in gold prices across the globe, Sugandha Sachdeva, Vice President, Commodity & Currency Research, Religare Broking Ltd.
said, “The sentiment for the metal turned bearish at the start of the week. The main reason for this was Russia’s promise to reduce military operations around Kyiv. However, there is still a lot of doubt about it.
Gold took support near the psychological level of $1,900 an ounce amid security concerns. In addition, Russian President Vladimir Putin asked foreign buyers to pay in rubles, threatening to stop gas supplies. So the tension has increased.
Sugandha
Sachdeva of Religare Broking said, “There is a lot of panic that decades of high inflation will have a negative impact on US economic growth. Euro area inflation also reached a record 7.5 per cent in March, compared to a revised figure of 5.9 per cent in February.
This is a positive factor for rising gold prices. However, gold did not react much for March. It is estimated that the Fed may increase interest rates by 50 bps in its next meeting.
What to do
Expert has advised medium and long term investors to buy on dips i.e. on downside. Sugandha Sachdeva, Religare Broking said, “Contrary to the weekly losses, gold has seen the biggest quarterly gain since September-2020.
The Russia-Ukraine conflict remained at the center for the past few days, while rising inflation led to an increase in investment demand for gold.
Considering a mix of factors, some further pressure may be observed in prices, but we recommend maintaining a buy-on-dips approach in Gold. That is, buying advice in the fall.
