Gold to get more expensive? Should you buy before it becomes out of financial reach? Analysis here
The spot gold seems positive on ease in US-China trade tension and Fed Chief's announcement of 'status quo' on interest rates. It can show $1325 levels in one month, say experts.
On account of easing US-China stand off and Fed Chief's dovish stand on interest rates, the gold pries may continue to soar in coming times. Commodity experts have expressed that gold is moving in the range of $1280/ounce to $1325/ounce. At Multi Commodity Exchange (MCX) the gold is poised to touch Rs 33,900 to Rs 34,000 per ten grams in one month but not before some profit booking.
Speaking on the gold outlook for one month perspective Sugandha Sachdeva, Vice President at Religare Commodities told Zee Business online, "There are two major triggers that is leading the bull run in gold prices — expecting ease in US-China trade stand-off on upcoming trade talks and Fed Chief's announcement that there would be status quo on interest rates." She said that in spot market the gold price is having a strong support at $1280 per ounce and can move up to $1325/ounce levels.
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Giving cue about the gold movement at the MCX Sugandha Sachdeva of Religare Commodities told, "At MCX, Gold has strong resistance at Rs 32,500 per ten gram levels. But, I would suggest investors to wait for some profit booking and then only take a buy position for the target of Rs 33,700 which looks possible in one month time."
Standing in sync with Sugandha Sachdeve of Religare Commodities; Amit Sajeja, AVP — commodities and Currencies at Motilal Oswal told, "The gold looks positive in one month perspective and spot gold looks poised to touch the $1355 per ounce levels in next one to two months." Giving details of support level for the spot gold Sajeje said, "Spot gold has strong support at $1275 per ounce levels. At $1335-50/ounce levels, there would be some profit booking but if you take one year perspective gold may show the $1450/ounce levels." Giving gold outlook for one month Sajeje said, "Gold may show Rs 34,000 levels in one month and an investor can take a buy position at current market price maintaining a stop loss at Rs 33,200 levels."