Gold Price Today Nears Rs 50,500; Over Rs 5,600 Down from All-Time High; Time to Buy?

Gold prices in India rose on Friday following the global signals. On the Multi Commodity Exchange of India (MCX), gold futures rose 0.09 per cent to Rs 50,590 for 10 grams at 0935 hours on May 20. However, silver prices fell on Friday. Precious metals futures fell 0.08 percent to Rs61,515 per kilogram on May 20.

In the international market, gold prices jumped on Friday as the dollar retreated from its highest levels in two decades. Gold futures were down 0.2 percent at $1,838.81 an ounce, while US gold futures were down 0.1 percent at $1,839.30, Reuters reported. Safe metals prices are up about 1.5 percent this week in the global market.

The US dollar fell, extending its decline from a two-decade high. The dollar’s decline makes He went More affordable for holders of other currencies. US 10-year Treasury yields also fell, driving up demand for the precious metal.

Holdings of the SPDR Gold ETF, the world’s largest gold-backed ETF, rose 0.66 percent to 1,056.18 tons on Thursday from 1,049.21 tons on Wednesday.

To cool rising inflation, the US central bank is likely to raise interest rates by the end of this year than previously expected, according to a Reuters poll. Some analysts have argued that higher interest rates may send gold lower in the future due to competition from higher yielding investments. “

Gold Price Today: Should You Buy?

Global gold prices are flat and could remain in a strong range for Friday’s trading if the dollar extends further losses into the end of the week. The lack of any major data in today’s trading may keep the movement of gold limited and could follow the movement of the dollar. “The LBMA spot gold range today is between $1,820.00 and $1860.00,” said Sriram Iyer, senior research analyst at Reliance Securities.

Domestic gold futures prices can start flat and can remain within a fixed range to track Friday trade in overseas markets. A stronger rupee could sustain the upside. The MCX gold range for June today is Rs 50,150-50,850.

Gold prices are in a state of uncertainty as growth concerns, geopolitical uncertainty and spiraling inflation are pushing them higher while a stronger US dollar and higher bond yields are eroding the luster of gold. Investors cannot decide to buy on dips or sell on rallies. The hesitation may remain in gold for some time. Buying area above – Rs 50,650 for a target of Rs 50,900

Buy Zone below – INR 50,350 for a target of Rs 50,100,” said Dr. Ravi Singh, Vice President and Head of Research, ShareIndia.

Gold Price Outlook

Global stock markets witnessed a sharp sell-off, boosting the allure of the safe-haven metal, as new indications of slowing growth led investors to move to safe-haven assets. Gold is said to be a good way to hedge against inflation. However, the metal’s upside was limited as the dollar strengthened in response to the US Federal Reserve’s aggressive policy towards higher prices. Saish Sandeep Sawant Desai, Research Associate, Base Metals, Angel One Ltd.

He added, “Gold is expected to rise, and regain strength, as fears of an economic slowdown persist and the dollar continues to decline, helping the safe-haven commodity.”

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