MCX Gold gains, long-term bullish; check intraday strategy

Gold Rate Today, Gold Price in India on 22 March 2022: Gold prices in India were trading in the positive territory on Tuesday, despite weaker global trends.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading in the positive territory on Tuesday, despite weaker global trends. On Multi Commodity Exchange, gold April futures were trading Rs 151 or 0.3 per cent up at Rs 51,806 per 10 grams. Silver May futures were ruling at Rs 68,811 per kg, up Rs 462 or 0.7 per cent on MCX. Globally, yellow metal prices fell as U.S. Treasury yields hit fresh multi-year highs following Federal Reserve chair Jerome Powell’s aggressive inflation stance, while safe-haven bullion remained underpinned by escalation in the Ukraine crisis, according to Reuters. Spot gold was down 0.2% at $1,931.84 per ounce, while U.S. gold futures were flat at $1,930.20.

Pritam Patnaik, Head – Commodities, HNI and NRI Acquisitions, Axis Securities

Gold prices seem to have ignored the hawkish statement made by Fed chair Powell, indicating that the U.S. central bank was likely to raise interest rates aggressively to bring down inflation that was running too high. This stance sent the benchmark 10-year bond yields above 2.3% for the first time since May 2019, while a closely watched gap between rates for two- and 10-year Treasury notes flattened further, a potential sign of an economic downturn. Historically, sharp moves in the U.S. Treasury market are generally an indication of an onset of the recession, with the broader markets doubting if the Fed could optimally balance the economic growth and rate hikes to combat inflation. The on-ground situation in Ukraine remains tense, and in the absence of any real compromise, it has helped to create a support base for gold. De-escalation in the warning nations could bring gold back to $1900 levels, as the near-term impact of the Fed‘s hawkish statement is yet to be priced in. The long term is still bullish for gold, as the central bank struggles to manage inflation without compromising on economic growth.

Bhavik Patel, Commodity/Currency analyst, Tradebulls Securities

Higher gold prices are here to stay as despite Federal Reserve Chair Jerome Powell signaling that the central bank could aggressively tighten interest rates more than markets are expecting due to higher inflation, gold bulls have not loosen their grip. The gold market appears to be taking the hawkish comments in stride. Money managers have also lowered their speculative long positions by 15,913 contracts to 165,597. At the same time, short positions rose by only 523 contracts to 39,060. Gold’s net length is down roughly 11.5% from the previous week. Gold prices are also supported by inflows in ETF as the market has seen nine consecutive weeks of inflows. Russia-Ukraine crisis continues to support prices and higher crude will lead to further inflationary expansion. Intraday recommendation is buy on dips near 51650 for estimated target of 52000 and stoploss of 51400.

Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers

On Monday, spot gold closed at $1,936 an ounce, up by $14.8 or 0.77% as the US Treasury yields hit fresh multi-year highs following Federal Reserve chair Jerome Powell’s aggressive inflation stance, while safe-haven bullion remained underpinned by escalation in the Ukraine crisis. Gold prices extended gains to $1,935 an ounce amid an increase in safe-haven demand as the war in Ukraine continues and not much progress on a ceasefire has been made so far. Still, a rise in global bond yields amid prospects of faster interest rate increases around the world prevented further gains for the bullion. Last week, gold prices lost more than 3%, their biggest weekly percentage drop since mid-June. MCX Gold April future may rise to Rs. 51,850 per 10 gram

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities

COMEX gold trades modestly higher near $1935/oz after a near flat close yesterday. Gold trades higher supported by geopolitical tensions and inflation concerns and weakness in equities. However, weighing on price is higher US bond yields amid Fed’s aggressive monetary tightening stance. Gold may remain range bound amid mixed factors however general bias may be on the upside unless geopolitical risks subsides.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

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