Would you Buy Gold Now? It is priced 51000/10gm
A month ago COMEX Gold has touched a peak of 2089$/oz. (Rs.56190/10gm in MCX) then declined to 1910$/oz. (Rs.50500/10gm in MCX). Approximately 30% market correction from the peak so far after the bullish rally from last November according to the Fibonacci retrace levels.
Would you buy gold now? Because,
Technically market correction levels are providing enough space for buyers. RSI shows the levels are completing the breathing period for the long term bull market run. But the main driver is the fundamental Outlook.
Gold has rallied exactly more than a year due to safe heaven tag. Even though the trends in other financial assets are mixed, Gold has accepted as the topmost bet. The Covid-19 era has confirmed its status.
The new scenario is a much-waited sell-off in US tech stocks and fewer expectations on a second stimulus package before upcoming US Elections. The threat of rising inflation and the Federal Reserveâ€™s new monetary policy stance to target average inflation of 2%, will keep real interest rates lower and support gold and silver prices in the long-term.
Tensions have developed between Greece and Turkey last week. India-China forces also came face to face and the standoff continues amidst issues with the US in the South China Sea.
Even though the fear about Covid-19 has settled globally, economic transactions are yet to reach in full mode and the negative stories about most trusted Oxford vaccine trials seem the COVID-19 continue to hurt the global economy further.
Gold prices are finding strong support above $1900/oz. (50,000/10gm in MCX).With falling crude price and week stock market, Gold prices may see July like situations once again to reach the psychological resistance level $2300/oz. (around 60000/10gm In MCX).