On the MCX, there has been some rangebound trade in the precious yellow metal on Wednesday due to rupee's appreciation by a sharp quantum to levels below 74. Gold futures for April delivery was last trading higher by just 0.22% at Rs. 43,835 per 10 gm. Today's high however has been at Rs. 43,850.
Global Gold Prices
Once again gold in global markets gained as there are still doubts prevailing on the stimulus dole out by the US government and hence gold as a safe-haven gains appeal. Spot gold traded higher by 0.5% at $1,657 per ounce. In Monday's global crash of equities, gold touched a 7-year high and touched levels of more than $1700 per ounce.
US gold futures fell 0.08 percent to $1,659 per ounce.
What Will Support Gold Prices In Indian Markets?
1. Global scaling in gold price as there are still concerns on the stimulus from major central banks for tackling economic crisis due to coronavirus
2. Weak and highly volatile equities
3. Rupee's likely gains in the near term
4. Belief that investors flock to gold and other safe havens amid crisis such as the recent outbreak of coronavirus
5. Easing or cut in interest rate by global central banks will support gold. With lower interest, non-yielding investments such as gold becomes lucrative.
Gold To Touch Rs. 50000 Per 10 Gm Levels By Akshaya Tritiya Or Gudi Padwa
As there is seen that coronavirus effect will likely last longer and its wake global central banks will come at rescue by easing interest rates, there shall be gains on the yellow metal and dealers in the commodity expect the metal to touch Rs. 50000 per 10 gm levels by Akshaya Tritiya or Gudi Padwa.
Commodities Expert Advise Buy On Dips Strategy For Gold
With the global markets being favourable for gold as an investment, experts advise buy on dips strategy.