Due to the fact that it was Good Friday, the gold markets were quiet on Friday, and depending on which market you trade, they may not have even been opened. Gold, the most valuable of all precious metals, is prized for its beauty, liquidity, investment potential, and industrial properties all over the world. Gold is commonly regarded as a financial asset that maintains its value and purchasing power during periods of inflation. Due to its unique properties of being one of the most malleable and ductile metals with a high melting point and easy recyclability, gold performs exceptionally well. For gold value chain participants such as mining companies, processors, companies dealing in gold and gold products, jewellers, and even governments that rely on the proceeds of bullion consumption and trade, risk management is critical.
Gold in India
In India, when the markets closed on Thursday, gold futures were 469 rupees higher, while silver futures were 1226 rupees higher. Jewellery, investment, central bank reserves, and technology are the four main drivers of global gold demand. MCX June Gold Futures ended at Rs 44,935 per 10 gm, going up by Rs 469 or over 1%.
Gold's current short-term momentum, according to analysts, is positive. The ratio of bullish to bearish/neutral forecasts is 3:4. Seasonality, such as marriage and harvesting, has an impact on gold demand in India. Gold is traded in US dollars on international markets. When you import USD, it is converted to INR. As a result, fluctuations in the USD or INR can affect the price of gold imports and, as a result, the selling price.
Gold prices in India are still down 11,000 from August 2020 highs of 56,200.
Since the beginning of the year, 10-year yields have risen more than 80 basis points in the first quarter. Gold has also disappointed, having lost nearly $200 since the beginning of the year, the worst start to any year in nearly 40 years.
Holding above its declining resistance line, which is now support is clearly bullish for gold, offering an open window to bulls and bears. However, the expansion of the yellow metal has not yet been confirmed and the breakout does not invalidate the medium time bearish implications.
In the short run, the international gold markets formed a little "double ground," but at this point experts believe the market needs to break down above $1750 to continue rising. Gold prices are supported by a weaker dollar and lower bond yields. Yellow metals will also benefit from inflationary pressure.
Wells Fargo expects gold to stage its "strongest rally" this year, with a target price of $2,200. "Gold supplies have shifted from plentiful to scarce. In the past, such events have sparked some of gold's most powerful price rallies.
Unlike other asset classes, gold prices have historically had a relationship with volatility. While other asset classes, such as bonds and stocks, dislike increased volatility because it indicates greater uncertainty about cash flows, dividends, and coupon payments, gold tends to benefit during times of increased volatility.
Gold Last week
|25th Mar 2021||1st April 2021||Weekly Change|
|Gold Price COMEX||$ 1725.1|| |
|Gold Price MCX||Rs 45,112||Rs 45,404||+0.65%|
|Gold Price in Mumbai (Retail)|
|Rs 46,430||Rs 46,605|| |