Today marks the third consecutive week that bullion prices have been on an upward trend amid escalating geopolitical tensions and increased central bank buying. Concerns over Iran’s retaliation following Israel’s airstrike on its embassy near Damascus, coupled with the risk of escalating conflict in Gaza, have pushed investors into low-yielding assets such as gold and money, according to analysts.
In US markets, spot gold was up 0.6% at $2,356.69 an ounce at 0323 GMT, after hitting an all-time high of $2,431.29 on Friday. U.S. gold futures were flat at $2,373.30.
Today, the US Dollar Index, DXY, was hovering near the 105.93 mark, down 0.09 or 0.07%.
Goldman Sachs has significantly increased its forecast for the price of gold to $2,700 per ounce by the end of the year. This optimistic outlook is based on several factors, including increased gold purchases by central banks in emerging markets and by retail consumers in Asia.
Additionally, anticipated interest rate cuts by the Federal Reserve and potential economic uncertainties related to the US election cycle and fiscal policies have contributed to the bullish view on gold. Previously, Goldman Sachs predicted that gold would reach $2,300 per ounce by the end of the year. According to Neha Qureshi, Senior Technical and Derivatives Analyst at Anand Rathi Commodities & Currencies, MCX Gold (June) showed an inverted hammer candlestick pattern on the day. chart, signaling potential bearish trends. The Relative Strength Index (RSI) has entered the overbought territory, hinting at a likely price pullback in the near future. Key levels to watch are resistance at 72,300 and 72,800, as well as support at 71,600 and 71,100.
Intraday Trading Strategy by Neha Qureshi:
– Sell MCX JUNE Gold futures at Rs 72,000 with a stop loss of Rs 72,600 and a price target of Rs 71,300
– Sell MCX MAY Silver futures at Rs 83,000 with a stop loss of Rs 84,000 and a price target of Rs 81,000
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
