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Gold price today: Following the dollar index retreat from 20 years high, gold price on Multi Commodity Exchange (MCX) ended in green territory this week. MCX gold rate on Friday closed at 50,845 per 10 gm whereas spot gold price ended at $1845 per ounce. According to commodity market experts, ease in US Dollar (USD), Indian National Rupee (INR) and steep fall in global equity markets this week helped precious yellow metal to regain the ground. They said that yellow metal prices are likely to trade with positive bias and it may go up to 52,100 per 10 gm levels on MCX whereas $1780 is expected to work as strong support for gold price in spot market.

Speaking on the reason for rise in gold price this week, Vipul Srivastava, Research Analyst — Metals & Energy Research at Religare Broking Ltd said, "Gold prices regained ground after a four-week consecutive fall and settled into positive territory. Precious metal found traction as the dollar retreated from a 20-year high, which made gold less expensive for the holder of other currencies. A weak rupee, which tested fresh lifetime lows, assisted gold with additional gains on the domestic bourses. Also, steep fall in the global equities furbished the safe-haven appeal of the metal amid worries about the global economic health."

The Religare Broking experts went on to add that the rising energy prices remained a concern, which could again fuel gold demand as a hedge against inflation. The looming possibility of a European Union embargo on Russian oil imports, and easing lockdown restrictions in China could give a further boost to oil demand and its prices.

Echoing with Vipul Srivastava's views, Pritam Patnaik, Head - Commodities, HNI & NRI Acquisitions at Axis Securities said, "A retreating dollar index from its recent two-decade high of 105 levels and a potential recession staring us in the face, led by a slowing growth trajectory in the US and Europe, helped revive demand for the safe haven. The possibility of a Recession is quickly starting to turn into reality, led by the flagging economies in the US and EU."

The Axis Securities experts said that the hawkish stance adopted by the US FED only fans more panic in the system citing, "A high-interest rate regime during periods of low growth is a recipe for a stagflation-led recessionary situation. With the Fed making its intentions clear for 50 bps hikes in its coming two sessions, gold prices could witness some headwinds. A respite in the one-way rally in the dollar index has given some respite to gold."

Pritam Patnaik of Axis Securities said that markets are largely going to remain range-bound. Gold is expected to move in the range of $1820 to $1860 levels in the coming week and a breach on either side would only accentuate the price movement in that direction.

Speaking on gold price outlook, Vipul Srivastava of Religare Broking said, "Going forward, metal has witnessed a rebound after finding a cushion near 49,500 per 10 gm ($1780 per ounce) mark, which is likely to act as immediate support, followed by 48,800 10 gm ($1830 per ounce) mark crucial support. Moving to the upside, prices are likely to trade with a positive bias, where the upside could be seen towards 51,500 per 10 gm level initially, and the next hurdle could be found at 52,100 10 gm mark for the coming week."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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