Gold Crashes By 1 %, Silver By 3%: What Should Be Investors, Traders Take?

Commodities prices in line with other asset classes have seen a sharp fall in today's session (January 6, 2022). The yellow metal on the MCX for Februrary delivery traded with a cut of 1.2 percent or Rs. 578 at Rs. 47,443 -which is close to its day's low price. Silver in line has seen an even higher cut of close to Rs. 1897 or over 3 percent at Rs. 60,341 per kg.

Gold, silver price trend internationally

In the international markets after Fed's hawkish minutes release with bond yields gaining by over 1.7 percent has led gold prices in the spot market to decline below the crucial $1800 per oz level at $1788 per oz level. Meanwhile, silver in spot market has also sank by over 3 percent to $22.05 per oz.

What should be investors’ and intra-day traders take on gold, silver?

This decline provides traders as well as investors with an apt opportunity to probably average their investment into gold and decline. Every decline by close to Rs. 100 per 10 gm or Rs. 100/kg in case of silver is an entry opportunity.

Further there is a view that gold prices this year could test fresh highs after decline of a substantial 4 percent in the previous year owing to inflationary concerns.

 

Gold, silver price targets for 2022

Gold price is set to scale new highs-an estimated price for international gold being $2100 per oz for 2022.  U.S. dollar weakness and inflation are some factors that may drive the rally.

Silver prices dragged lower also due to lower industrial demand and importantly after the white metal registered the steepest decline since 2018 may see price increase to $24 by the first half of 2022.

Silver is likely to largely follow gold, but the market balance looks supportive through 2022. The electronics sector, along with strong solar and electronic vehicles, has helped industrial demand to recover to pre-pandemic level of 556moz this year," views as put by Analysts at Australian bank ANZ.