Gold, silver rates rebound on Dhanteras 2023. Is this a buying opportunity?
- Dhanteras 2023: Gold rate today has strong support placed at $1,910 per ounce levels in spot market whereas MCX gold rate has strong support at ₹58,500 levels, say experts
Gold rate today: After slipping below ₹60,000 levels during Thursday deals on Multi Commodity Exchange (MCX), gold price witnessed some relief rally ahed of yesterday's closing bell and regained ₹60,000 levels. In early morning deals, MCX gold rate continue to sustain above ₹60,000 per 10 gm levels whereas spot gold price is currently oscillating around $11,958 per ounce levels.
Silver rate today on MCX opened at 70,998 per kg levels and went on to hit intraday high of ₹71,155 levels within few minutes of commodity market's opening bell today. In international market, silver price today is around $22.70 per ounce levels.
US dollar in focus
According to commodity market experts, gold and silver prices fell due to ascendence in the US dollar index this week. They said that US dollar index has surged to the tune of 0.80 per cent this week after nosediving around 1.40 per cent last weel. This rise in US dollar rates is due to the US Fed chair's announcement to focus on inflation after the FOMC meeting.
On why gold and silver prices crashed this week, Amit Sajeja, Vice President — Research at Motilal Oswal said, "Gold and silver prices had ascended nera 10 per cent in three weeks due to Israel-Hamas war. Gold prices in international market touched $2,000 levels where invetors were afraid of fresh buying. Apart from this, US Fed's decision to focus on inflation also put breaks on gold price rally and hence profit booking triggered in gold and silver as bullion prices had ascended at overbought levels."
On how US Fed meeting triggered profit booking in bullions, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, "The US Fed's chair said after the completion of FOMC meeting that the US Central Bank will focus on inflation. This triggered fresh buying in the US dollar. Hence, after nosediving to the tune of 1.40 per cent last week, US dollar index gained around 0.80 per cent this week, which put pressure on gold and silver prices across world."
Can Dhanteras 2023 provide good buying opportunity?
On whether current pull back is mere relief rally or some more downside is expected, Amit Sajeja of Motilal Oswal said, "Ahead of Dhanteras 2023, one big correction was expected and that has happened. But, there can be one more dip during day time and gold prices may go to the tune of ₹59,500 per 10 gm levels. So, my suggestion to fresh investors is to wait for one correction in the yellow metal and buy gold in ₹59,500 to ₹59,000 Zone." However, he advised strict stop loss at ₹58,500 levels while taking gresh position in the yellow metal.
Sajeja said that spot gold price has major support placed at $1,910 per ounce levels. He went on to add that $1,910 to $1,930 would be a good buying zone for four to six weeks target of $2,000 per ounce levels. On MCX, he said that gold prices may go up to ₹62,000 per 10 gm levels in next four to six weeks.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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