Home / Money / Personal Finance /  Gold price today: Should you buy yellow metal after US inflation surge?

Gold price today: After US inflation logging steepest rise in last four decades, gold price across world has been ascending. Spot gold price has breached $1855 per ounce hurdle whereas Multi Commodity Exchange or MCX gold rate has climbed above 49,000 per 10 gm levels. According to commodity market experts, market has already discounted US Fed's hawkish stance on interest rate hike and now precious yellow metal price is ascending due to global inflation concerns that may further worsen as crude oil prices are still above $90 per barrel in international market.

According to commodity market experts, soaring global inflation is major reason for rise in gold price. They said that US inflation logging highest YoY rise in last 40 years, tumbling equity market across world may help gold emerge as investors haven in near term. They went on to add that Russian Ukraine conflict hasn't escalated but it hasn't calmed down as well. They said any negative news in regard to Russia Ukraine standoff can lead to sharp rise in global crude oil prices, which will further fuel inflation. They added that spot gold price has touched $1865 levels yesterday and it may give fresh breakout on Monday or next week and can go up to $1890 and $1920 per ounce levels in short term. In domestic market, MCX gold price is expected to go up to 50,000 in near term, they said.

Speaking on gold price triggers; Anuj Gupta, Vice President at IIFL Securities said, "US inflation has registered sharpest year-on-year rise in last 40 years that may further worsen the global inflation situation. Apart from this, crude oil prices are still above $90 per barrel and any negative development in Russian Ukraine conflict can push it in three digit figures. Yesterday, spot gold price has touched $1865 levels breaking its hurdle placed at $1855 levels. So, gold price is in uptrend and one can buy this precious metal at current levels for immediate target of $1880 and short term target of $1920 levels."

Expecting fresh breakout in spot gold price; Amit Sajeja, Vice President — Research at Motilal Oswal said, "Spot gold price has breached its latest high of $1852 per ounce and now it may give fresh breakout at $1865 levels. After this breakout, it may soon go up to $1890 to $1900 per ounce levels."

On US Fed may increase interest rate after the robust rise in inflation, Amit Sajeja of Motilal Oswal said that the market has already discounted US Fed's interest rate hike announcement and it won't have much impact on the gold price escalation. He predicted high volatility with positive bias in near term for gold price.

On MCX gold rate outlook; Anuj Gupta of IIFL Securities said, "As MCX gold price has regained 49,000 levels, its current strong support is placed at 48,500 levels. One can initiate momentum buy at current levels for immediate target of 49,700 maintaining stop loss at 48,350 levels. However, for those who have slightly bigger time horizon, they can hold it for short term target of 50,000 per 10 gm levels."

US inflation surged over the past year at its highest rate in 40 years, hammering American consumers, wiping out pay raises and reinforcing the Federal Reserve's decision to begin raising borrowing rates across the economy.

The US Labor Department said on Thursday that consumer prices jumped 7.5 per cent last month compared with a year earlier, the steepest year-on-year (YoY) increase since February 1982.

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

Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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