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Business News/ Markets / Commodities/  Gold price today: Yellow metal jumps 11.7% in 2022. Will it breach lifetime high?
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Gold price today: Yellow metal jumps 11.7% in 2022. Will it breach lifetime high?

Gold price today: If this rally sustains and spot gold price remains above its current support of $1970 levels, then we can expect it to breach its life-time high of $2075 per ounce in spot market and ₹56,191 at MCX, believe experts

Gold prices today: MCX gold rate has appreciated 11.70 per cent in 2022 whereas spot gold price has surged 8.80 per cent in 2022.Premium
Gold prices today: MCX gold rate has appreciated 11.70 per cent in 2022 whereas spot gold price has surged 8.80 per cent in 2022.

Gold price today: After logging its biggest weekly gain since May 2021, Multi Commodity Exchange or MCX gold rate today opened with an upside gap of 717 per 10 gm and ascended to its intraday high of 53,797 levels, near 2 per cent higher from its Friday close of 52,549 per 10 gm. If we look from year-to-date perspective, MCX gold rate has registered 11.70 per cent rise in 2022. In spot market, yellow metal price today breached $2,000 per ounce levels, logging around 8.80 per cent rise in year-to-date time. 

Reason for shine in gold price

According to commodity market experts, this rise in gold price today can be attributed to three major reasons — escalating tension in Russia-Ukraine war, US Fed interest rate hike of 50 bps being ruled out in March 2022 and major commodity prices soaring to multi-year high fueling inflation concern at alarming levels. They said that if this rally in bullion metal sustains and spot gold price manages to trade above its current support of $1970 levels, then it may breach its life-time high of $2075 per ounce in spot market and 56,191 per 10 gm at MCX.

Speaking on the reason for rising gold price; Sugandha Sachdeva, Vice President-Commodity & Currency Research at Religare Broking Ltd said, "Gold prices are rising because of escalation in tension in Russia-Ukraine crisis. Apart from this, a 50 bps US Fed interest rate hike is being ruled out now as the US Fed officials are talking about 25 bps interest rate hike coming in the US Fed meeting scheduled on 15th to 16th March 2022. Further supporting Gold’s upwards trajectory are the soaring commodity prices to multi-year highs that has pushed inflation concerns to alarming levels." 

Gold price outlook

On what could be the next target for gold; Anuj Gupta, Vice President at IIFL Securities said, "Gold has breached $2,000 levels in spot market and it seems heading towards 2050 per ounce levels. In MCX, gold prices are poised to touch 54,000 levels in near term." He said that soaring crude oil prices have logged near 60 per cent rise at CMX and that is adding pressure on Indian rupee that is expected to hit around 77 levels in near term.

On whether gold price will breach its life-time high; Sugandha Sachdeva of Religare Commodities said, "If this rally sustains and spot gold price remains above its current support of $1970 levels, then we can expect it to breach its life-time high of $2075 per ounce in spot market and 56,191 at MCX."

However, Anuj Gupta of IIFL Securities maintained that there will be high volatility in the gold prices and hence broader range in spot market will be $1970 to $2050 per ounce and once should know one's levels instead of getting confused with the volatility in the commodity markets.

Expecting profit-booking after the sharp upside moves; Vidit Garg, Director at MyGoldKart said, "Technically, if we see the charts removing the noise of war then it seems that for once it can come down till $1950 or $1940 per ounce levels, which reflects that sooner we may witness buyer exhaustion and profit booking by them. 9 period EMA on intraday chart stands at $1981$ while 21 period stands at $1968 per ounce."

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

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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Updated: 07 Mar 2022, 10:50 AM IST
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