After falling below ₹60,000 on the Multi Commodity Exchange (MCX) on Thursday, gold prices saw a relief rally, surpassing ₹60,000 ahead of the closing bell. In early morning transactions, MCX gold sustained above ₹60,000 per 10 gm, while the spot gold price hovered around $11,958 per ounce. MCX silver opened at ₹70,998 per kg, reaching an intraday high of ₹71,155 shortly after the commodity market’s opening bell. In the international market, silver is trading around $22.70 per ounce.
Experts attribute the recent decline in gold and silver prices to the strengthening US dollar index this week, which rose by 0.80% after a 1.40% dip last week. The surge is linked to the US Federal Reserve’s commitment to focus on inflation post the FOMC meeting.
Regarding the current rebound, experts weigh in on whether it’s a temporary relief rally or if further downside is anticipated. They suggest that a significant correction was expected before Dhanteras 2023, which has occurred. However, there might be another dip during the day, potentially bringing gold prices down to ₹59,500 per 10 gm. The advice for new investors is to wait for this correction in the yellow metal and consider buying in the ₹59,500 to ₹59,000 range. Caution is advised, and investors are recommended to set a strict stop loss at ₹58,500 when taking fresh positions in gold.
As the market dynamics continue to evolve, especially with Dhanteras approaching, investors must navigate the fluctuations and be strategic in their entry points, considering potential corrections and market trends.
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