Gold prices today jump to highest in over 2 years

JK Student News

Gold prices in India today jump to highest in over 2 years

Gold prices in India rose to over two-year highs, tracking firm global rates. On MCX, gold futures were up 0.6% to ₹55,546 per 10 gram while silver jumped 1.4% to ₹70,573 per kg. Gold had hit record highs of ₹56,200 in August 2020. In global markets, gold today jumped to six-month high with the dollar index remaining steady.

A weakness in US dollar makes greenback-priced bullion more attractive for overseas buyers. Spot gold was up 0.8% at $1,838.69 per ounce while spot silver rose 1.1% to $24.25.

“Dollar index trend has been weak for 3 months and Gold prices have taken a better outcome from the falling dollar as prices of Gold have seen a 10% jump in last quarter of 2022 with prices rose from 50000 to 55000 in MCX,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

Traders will be eyeing minutes from the Fed’s December policy meeting due later this week to have more insight into the central bank’s tightening path. The Fed raised rates by 50 basis points (bps) in December after four consecutive increases of 75 bps each.

Gold is considered a hedge against inflation and economic uncertainties, but higher interest rates increase the opportunity cost of holding gold as it pays no interest.

2022 has definitely given a boost in market participants confidence w.r.t gold and silver. Along with Russia-Ukraine tensions, inflationary concern and Covid scare in China, market participants will also carry the baggage regarding slower global growth. Going ahead, market participants will keenly focus on the monetary policy stance from major central bankers.

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A move in Dollar Index and Yields will also be watched by the market. And also apart from safe haven bets, advancement in green technology and increase in industrial demand could continue to support silver prices,” Motilal Oswal said in a note

For medium to long term investors, the brokerage has a target of Rs. 58,000 in gold and Rs. 73,000 followed by ₹82,000 in silver.

Bullions made a promising start to 2023. According to the technical indicators, the bullion market prices may see extended gains. The 20- and 200-day simple moving averages (SMAs) have recently bullishly crossed each other, endorsing the positive trend in the short-term picture. Gold has support at $1814-1801 while resistance is at $1838-1850. Silver has support at $23.72-23.55, while resistance is at $24.22-24.40. In rupee terms gold has support at ₹54,950-53,750, while resistance is at Rs55,480, 54,650. Silver has support at Rs69,050-68,580, while resistance is at Rs70,420–70,780,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd

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