On Thursday (11 November 2021), the price of gold again increased in the domestic market, while its prices were flat in the international market. In MCX, the December futures price of gold increased by Rs 127 to Rs 48,981 per ten grams. Whereas the previous price was Rs 48,854 per ten grams. Gold prices have increased after the rise in inflation in America. However, there was a slight increase in it on Wednesday. According to IBJA, the price of 24-carat gold increased to Rs 49140 per ten grams on Thursday. Gold continues to gain from the last three days. In such a situation, the question is whether gold will fall below this. Should gold buyers wait for a correction?
The effect of rising inflation in America on gold
Ravindra Rao, Vice President, Commodity Research at Kotak Securities, says that after the rise in inflation in the US, there was a sharp rally in gold. Rising inflation has raised concerns on the growth front and investors have increased their investment in gold to hedge against inflation. Obviously, if the pressure of inflation does not decrease, then investment in gold will increase further. Due to this, there is a possibility of gold becoming expensive in the international market at the moment. This will also have an impact on the Indian market. Therefore, gold may become more expensive in the coming days.
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The stance of the Federal Reserve will decide the price of gold
Vice President and Research Head of Share India Securities says that under the pressure of US inflation, gold took a gain of $ 40 in COMEX. While in MCX it touched the level of Rs 49,000. Investment in gold is increasing in America because the Fed has indicated to control interest rates in view of rising inflation. In such a situation, investors can increase investment in gold and due to this, gold can increase in the domestic market as well. Share India Securities has given buy advice in the range of Rs 48,800 to Rs 49,300. At the same time, it is advised to sell in the range of Rs 48,600 to Rs 48,300.
Amit Khare, Research AVP, Ganganagar Commodity, says that according to the technical chart, at present it is not the right time to buy both gold and silver. Momentum indicator RSI is also not in favor of buying in gold at the moment. Therefore, the gold trader should maintain a long position in it for the time being and should also buy on the correction.
(Article : Surabhi Jain)
(The recommendations in this article are made by experts according to their own opinion. Based on this, consult your investment advisor before making any purchase. Financial Express does not take any responsibility for the recommendations of online experts)
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