BackGold to recover to ₹49,100 soon, says ICICI Securities
On Tuesday ,gold prices opened slightly higher and corrected sharply during the first few hours of the session till a low of ₹47,771.
PremiumGold has been quite volatile in the last few sessions. The yellow metal has been on a downhill journey since hitting a high of ₹56,200 in August. Prices of gold recovered strongly on Tuesday as rising coronavirus cases overshadowed some of the optimism for a quicker vaccine-fuelled economic recovery. ICICI Securities expect gold prices to recover in the near term. "We believe gold prices will recover further towards ₹49,100 level in the short-term. Gold jumped more than 2% on Tuesday, rebounding from a five -month low in the last session while silver soared over 6%, as the dollar slid, with US stimulus bets adding to bullion's appeal as an inflation hedge," says the brokerage.
Gold and silver prices in Indian markets dropped today amid weak global cues. On MCX, February gold futures slipped 0.24% to ₹48,449 per 10 gram. The precious metals had seen a sharp upmove in the previous session. Gold had jumped 1.4% or ₹700 per 10 gram while silver had surged about ₹3,000 per kg. Gold has been on a downhill journey since hitting a high of ₹56,200 in August.
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On Tuesday, gold prices opened slightly higher and corrected sharply during the first few hours of the session till a low of ₹47,771. However, prices did not sustain at lower levels and recovered strongly for the remaining session till a high of ₹48,640.
"Making gold more attractive to investors holding other currencies, the dollar fell on expectations of more US stimulus. In remarks released on Monday, Federal Reserve Chair Jerome Powell highlighted challenges of production and mass distribution before the economic impact of a vaccine becomes clear," says ICICI Securities.
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