Amit Sajeja of Motilal Oswal says that the recent rise in gold prices could be a pullback rally due to short covering.
Gold price today: Gold on MCX today is seen down by Rs 3600 from its recent high of Rs 55,558 per 10 grams. On Friday, MCX Gold closed at the level of 51888, down by Rs 190 or 0.36 percent from Thursday’s closing. However, spot gold prices in the international market closed at $ 1957 an ounce with a slight increase of 0.02 percent.
Commodity market experts say that due to no significant progress in the peace talks between Russia-Ukraine, the demand for gold seems to be picking up once again. Amid rising crude oil prices, Russia’s rival countries are demanding the price of crude gas in rubles, due to which there is a possibility of further increase in crude oil prices.
Market experts say that the spot price of gold in the international market has strong support at $ 1850, while support for MCX Gold is showing at 48,800 per 10 grams. Commodity experts say that any fall in gold should be considered as a buying opportunity. Because if there is no significant achievement in the peace talks between Russia and Ukraine, then gold prices will once again see a rise.
Sungadha Sachdev of Religare Broking says that from the medium to long term perspective, the outlook for gold looks very good. Therefore, any near term downside should be seen as a buying opportunity. There is a strong support for gold at Rs 48,800 per 10 grams or $ 1850 per ounce. On the upside, the first resistance is seen at Rs 53,500 per 10 grams and the next resistance is seen at Rs 56,000.
On the other hand, Amit Sajeja of Motilal Oswal says that the recent rise in gold prices could be a pullback rally due to short covering. In such a situation, investors who do not want to take too much risk would be advised to wait for a breakout in the spot price of gold on a weekly basis around $ 2000 an ounce. If this happens, buy gold and stay in it for a long time. On the other hand, those who have more risk appetite can adopt the strategy of buying on the downside with stoploss. Amit Sajeja says that gold is expected to be quite volatile in the current geopolitical tension situation.
