Anuj Gupta of IIFL Securities says gold prices could rise further in the face of rising crude oil prices. MCX Gold has strong support at Rs 47,200 per 10 grams whereas it has instant support at Rs 47,600.
Today’s gold price: Gold prices saw profit-booking after hitting 185 1852 an ounce in the spot market last week, but Bank of England interest rates rose 25 basis points and crude oil prices rose on the back of rising crude oil prices. Gold prices are expected to rise again, reaching 18 1,800 an ounce on Friday. Significantly, crude oil prices exceeded $ 90 per barrel. On the MCX, on the other hand, gold closed at Rs 47,948 per 10 grams on Friday.
Commodity market experts say the overall trend for gold is strong. Rising crude oil prices have raised fears of rising global inflation, forcing the Bank of England to raise rates to keep inflation in check. Similarly, the European Central Bank and the US Fed could be seen raising rates. The strengthening of the euro and the pound against the US dollar could further support gold prices.
Experts say the US is pressuring OPEC countries to increase oil production, but OPEC countries are unable to meet US demand. This is because the cost of drilling for crude oil has increased and the rising price of crude oil is helping to reduce the increased burden of production costs.
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Talking about the future prospects of gold, Amit Sajeja of Motilal Oswal said that gold prices are likely to remain strong in the future. In such a situation it should be bought in any autumn.
Goldman Sachs is also bullish on gold prices. This raises the spot gold price target for this year to 2, 2,100 per ounce.
Speaking on the domestic market, Anuj Gupta of IIFL Securities said that gold prices could rise further in the face of rising crude oil prices. MCX Gold has strong support at Rs 47,200 per 10 grams whereas it has instant support at Rs 47,600. When we get around 47900-48000, we should buy gold. Our immediate target will be Rs 48,700-48,800. If a gold breaks this level upwards too, then we will see a level of 49200-49300 in gold within 15 days to 1 month.
