Gold value dips in September. Should you purchase forward of the festive season?

Gold value on yesterday dipped 0.05 per cent on Multi Commodity Exchange (MCX). The December 2021 gold future contract on MCX closed at ₹46,500 per 10 gm, ₹21 beneath its Thursday shut value. Yellow steel value within the month of September corrected round 4 per cent whereas within the month of August it fell round 2.1 per cent on MCX. According to the commodity specialists, yellow steel value will proceed to stay beneath stress until it’s buying and selling beneath $1750 per ounce within the worldwide market. However, they maintained that treasured bullion steel has robust assist at $1680 and any massive dip in gold value needs to be seen as shopping for alternative for yellow steel buyers.

Triggers for gold value

As per gold commodity specialists, gold value might proceed to stay beneath stress on robust US Dollar. But, rising crude oil costs might result in sharp rise in world inflation. This rise in inflation might pressure Fed to rethink over its latest choice in regard to bond tapering. So, rising crude oil value might result in development reversal in gold value in second fortnight of October 2021. Apart from this, quick approaching pageant season in India is anticipated to gas gold demand within the home market, which can be optimistic for the yellow steel outlook. They stated that present energy disaster in China might also result in sharp correction in fairness markets the place fairness buyers might change to gold investments.

Speaking on gold value outlook; Anuj Gupta, Vice President — Commodity & Currency Trade at IIFL Securities stated, “Gold price is under pressure till it is below $1750 per ounce in international markets. But, it has strong support at $1680 per ounce levels and any dip in precious metal price should be seen as buying opportunity by investors. Current, dip in gold price is because of the US Dollar gaining strength after the Fed announcement in regard to bond tapering. However, the way crude oil price has been soaring in international market; it may lead to rise in global inflation in next few weeks that may force Fed to rethink over its announcement. Fast approaching festival season in India is also creating conducing milieu for gold investors.”

Echoing with Anuj Gupta’s views; Amit Khare, AVP- Research Commodities at Ganganagar Commodity Limited stated, “Power crisis in China has put global equity markets under pressure. If this crisis further continues, then equity investors may switch towards gold investments as soaring crude oil prices in the international market will have negative impact on the global economy, especially on the inflation front.”

Gold value goal

On whether or not there will probably be any development reversal in gold value in October, Anuj Gupta of IIFL Securities stated, “In first fortnight of October, gold price on MCX may further go down up to ₹45,500 to ₹45,000 per 10 gm as US Dollar may continue to remain strong in this period. However, once, it starts showing some weakness, gold price in international market will break $1750 to $1760 per ounce hurdle and hit $1800 to $1850 per ounce range in next one month. In terms of MCX, go0ld price may go up to ₹48,000 to ₹48,500 per 10 gm in next one month.”

Standing in sync with Anuj Gupta, Amit Khare of Ganganagar Commodity Limited stated, ” ₹45,000 to ₹46,000 per 10 gm on MCX is a very good buying range for gold investors as it is around ₹10,000 lower from its all-time high. One can expect ₹4,000 to ₹5,000 per 10 gm rise from these levels in gold price in next 3 months. Similarly, silver investors may expect ₹10,000 per kg rise in next 3 month from current silver price on MCX.”

Abhishek Chauhan, Head — Commodity & Currency at Swastika Investmart Ltd stated, “We are expecting Gold price to hit ₹49,000 per 10 gm till upcoming Diwali, which is around a month away.”

Disclaimer: The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint.

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