Gold prices have rallied to a four and half month high and the precious metal is in a sweet spot, due to a host of favourable factors. Here's what some of the experts are saying with regards to the movement of the precious metal:
Navneet Damani, VP - Commodities Research, Motilal Oswal Financial Services.
"Gold prices continue to trade higher, as it breached the physiological level of $1900 hovering around 4-1/2-month high amidst a drop in U.S. Treasury yields and a weaker dollar. The dollar index was pinned near almost a 4-1/2- month low against its rivals; whereas US 10Y yields was trading near two week low, below 1.6 level.
U.S. Senate Republicans plans to reveal a counteroffer to President Joe Biden's $1.7 trillion revised from $2.3tln infrastructure proposal tomorrow. Fed vice chair Clarida official continue to show confidence in fed's ability to manage inflation without hampering the U.S. economic growth. On data front, U.S. consumer confidence number was reported below the expectations although it was at par with previous months data. Broader range on COMEX could be between $1870- 1920 and on the domestic front prices could hover in the range of Rs 48,800- 49,360."
Mr. Nish Bhatt, Founder & CEO, Millwood Kane International - an Investment consulting firm:
Gold prices have been steadily rising in the past few sessions tracking international gold futures prices. The rally in the yellow metal continued past Rs 49,000/10gm earlier today to make a 4-month high.
The rise in the yellow metal has been on account of the fall in US Treasury yields, softer US dollar which pushes up the gold prices. The commentary by the US Fed on rising inflation has also helped gold prices. The dollar index is currently over a 4-month low. The current scenario combined with the rising number of cases due to the second wave will lead to investors turning to a safe haven and help further rally in gold prices."
It seems a host of things are now working in favour of gold prices and at least till US Bond yields do not rise, the rally could continue.