Gold likely to get stronger going forward; What buyers should know

One should have a part of the portfolio invested in Gold ETF as an insurance against the possible volatility expected in the global financial market, Anuj Gupta, Senior Technical Analyst at Angel Broking says

ZeeBiz WebTeam | May 08, 2020, 02:59 PM IST

In times like these when the markets have become very unpredictable, investment in gold has become a viable option, Anuj Gupta, Senior Technical Analyst at Angel Broking said. Gupta said that gold as an investment option was getting a good traction as of now. Heaping praise on Gold ETF (Exchange Traded Funds), Gupta said this particular instrument, alone, has got a very good response in April.

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The April month saw a record buying by the investors, with 170 tn of buying activity observed taking the overall selling to 3355 tn. Gupta is also a Commodity and Forex market expert. Pic Credit: Reuters

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On Thursday, gold price increased by almost 1.74 per cent and closed above 46100 levels, Gupta said. While the physical gold was not being sold because of nationwide lockdown, other options were good for investment purposes. This was a good time to accumulate gold in small amounts, without having to pay in one go,  unlike in physical gold. Pic Credit: Reuters 

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He was bullish on the yellow metal for today. The technical analyst recommends buying at 45900 levels with the stop loss of 45650, for the target of 46500 levels. He said that the gold should reach 46500 within a fortnight. Pic Credit: Reuters

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Gupta said that the chances of Gold getting a stronghold have increased significantly and the precious metals is now trading on a positive note even in the international market. He attributed this to a weakness in dollar due to dovish US economic data and expectation of negative interest rates in the next year in US. He said that in the international market, Gold may test USD 1730 levels, very soon. Pic Credit: Reuters

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Gold futures for June contract were trading at 46130 around 12:50 pm, almost flat in comparison to the previous close on Thursday. Pic Credit: Reuters

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One should have a part of the portfolio invested in Gold ETF as an insurance against the possible volatility expected in the global financial market, he further said. Pic Credit: Reuters