Gold prices for some time now are seen trading in a range. On the MCX, at the time of writing this copy, gold futures for delivery in August quoted higher by Rs. 37 at Rs. 47322 per 10 gm. Silver in line traded higher by Rs. 141 at Rs. 70,329 per kg.
In the US, equity markets along with gold markets are closed on account of observation of Independence Day this year which fell over the weekend this time.
Nonetheless as per the views of IIFL Securities Anuj Gupta, there has been witnessed a recovery in the gold price as central banks across the globe are on a gold buying spree owing to inflationary concerns. This is as gold is seen as an inflationary hedge other than the store of value. Other than that gold seems to outperform all other assets when there is economic unrest or other geopolitical tensions.
Better than expected jobs data in the US moved the US dollar higher
Last, in the international markets, there is seen a resilience in the US dollar on better than expected jobs data numbers. In the month gone by, the US companies hired the most unemployed individuals and offered them incentives. For a better view on the Fed's monetary reserve policy stance, investors are watchful of other economic data.
At the time of writing this copy, the US dollar index as per marketwatch.com quoted lower by 0.06% at 92.16.
Gold price outlook
For now due to gains in the dollar index, the yellow metal has moved higher by a tad but the gains have been capped due to the recent Fed's hawkish stance where it said it will begin increasing rates as early as 2023 as against the previously specified 2024.
Now most experts suggest that gold prices shall continue to fall for some time before gaining momentum further again. So, investors should largely capitalize on the current opportune time to take position in the yellow metal for a maximum allocation of 5-10% in their overall financial portfolio.
Retail gold prices
Gold prices vary in the retail market and because of the taxes and other implications quote at a higher price by Rs. 1500- Rs. 2000 per 10 gm. In the NCR region, gold of 22K and 24K quotes at a price of Rs. 46500 and Rs. 50,500, respectively.