Gold price is going through consolidation and it may go up to ₹48,500 per 10 gm levels, say experts
Gold price yesterday at Multi Commodity Exchange (MCX) dipped ₹318 and closed at ₹48,880 per 10 gm levels. However, if we go by commodity experts views, correction in precious yellow metal is good news for bullion investors. They said that gold price is going through consolidation and it may go up to ₹48,500 per 10 gm levels. The bullion experts went on to add that any dip in the precious metal should be seen as an opportunity to buy as gold price may rise up to ₹53,500 per 10 gm levels by the end of 2021.
Speaking on the gold price outlook Amit Sajeja, Vice President — Research at Motilal Oswal said, "Gold price is going through consolidation and the trend is expected to continue for next one month till it is trading in the range of ₹48,300 to ₹49,500 per 10 gm. However, I would advise gold investor to look at every correction as a buying opportunity as gold price outlook in medium-term looks positive and it may go up to ₹51,000 per 10 gm in medium-term time-horizon."
On reason for gold price consolidation Amit Sajeja of Motilal Oswal said, "The major reason for yellow metal consolidation is consolidation in the US Dollar (USD). Currently, US Dollar is sideways and trading in 89.50 to 91 mark in the currency market."
Suggesting gold investors to maintain 'buy on dips' strategy Anuj Gupta, Vice President — Commodities & Currency Trade at IIFL Securities said, "From medium to long-term time-horizon, gold price is expected to remain positive as global inflation may outperform demand. I would advise gold investors to maintain buy on dips and keep on accumulating gold till it is trading above ₹48,500 per 10 gm at MCX."
On gold price target in long-term perspective Anuj Gupta of IIFL Securities said, "Gold price in international market is around $1,880 per ounce and it is expected to go around $1,850 to $1,860 per ounce levels. Currently, yellow metal price is range-bound but after breaking the immediate upper hurdle of $1,880 to $1,900 mark, it may go up to $1,960 per ounce mark."
On gold price prediction in domestic market Anuj Gupta of IIFL Securities said, In domestic market gold price may go up to ₹53,500 by Diwali to year end." He said that after 15th July 2021, gold rally can be expected as demand for gold will start rising that will finally peak by Diwali 2021 to year end.
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