Gold Prices May Increase To Rs 82,800: Should You Buy Now?
Gold Price Today. (Representative image)
In Delhi, 24-carat gold prices increased to Rs 71,950 per 10 grams as against Rs 68,500 last week, a rise of nearly Rs 3,450.
Gold prices on Wednesday continued to rise amid a rise in geopolitical tensions in the Middle East following reports of Israel’s assault on Lebanon and the assassination of Hamas’ political chief in Tehran. In Delhi, 24-carat gold prices increased to Rs 71,950 per 10 grams as against Rs 68,500 last week, a rise of nearly Rs 3,450. Experts said the gold prices are likely to increase to Rs 82,800 as it is the resistance zone in the near term. Any signal by US Fed today of a possible rate cut in September will cause the gold rates to rise.
“Gold prices in Delhi rose to Rs 71,950 per 10 kg for 24-carats of 99.9 per cent purity and Rs 71,600 per 10 kg for 99.5 per cent purity,” said Surendra Jain, the vice-president of Chandi Chowk-based All India Sarafa Association.
Silver prices, however, increased to Rs 85,200 per kg.
The two-day meeting of the US Federal Reserve to decide on the interest rates in America is going to conclude today and the outcome will be announced at 11:30 pm IST. “Any signal indicating a higher probability of a rate cut in September will cause gold and equity prices to rise,” said Amit Goel, co-founder & chief global strategist, Pace 360.
In the futures market, gold was trading higher by 0.5 per cent at Rs 69,525 per 10 grams for the October delivery; while silver rose 0.81 per cent to Rs 83,325 per 10 grams.
Rahul Kalantri, vice-president (commodities) of Mehta Equities, said gold and silver prices surged in the latter half of Tuesday following news of Israel’s assault on Lebanon, propelling the metals’ prices above their resistance levels of $2,400 and $28.20 in global markets. Earlier in the day, gold prices had been steady around these figures, even as strong US data highlighted a tight jobs market. Market sentiment is mixed. However, a decline in US Treasury bond yields and a weakening Greenback have buoyed bullion prices as traders await the Federal Reserve’s monetary policy decision on Wednesday. Additionally, investors are monitoring the upcoming releases of the ISM Manufacturing PMI and the Nonfarm Payrolls report for July.
“Gold has support at $2,392-2,378 and resistance at $2,420-2,438. Silver has support at $28.05-27.80 and resistance at $28.55-28.74. In INR, gold has support at Rs 68,310-68,050 and resistance at Rs 68,830-68,980. Silver has support at Rs 81,850-81,180 and resistance at Rs 82,290-82,800,” Kalantri added.
Pranav Mer, vice-president, EBG – Commodity & Currency Research, JM Financial Services Ltd, said gold has moved up steadily over the past four trading sessions and is trading close to $2425 per ounce, supported by bargain buying above support levels of $2,350 amid expectation of rebound in demand in major consumer India after import taxes were cut last week. The bullion remained supported by rising bets of rate cuts by some global central banks. In major cues to watch would be the US Fed’s policy meeting outcome later in the day and the US employment data on Friday.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
