Gold Will Hit $1950-1980 Per Troy Ounce

Gold prices have rebounded in recent days as dollar index weakening. Due to uncertainty over the health of U.S. President Donald Trump, heightened risk also added to buying of the safe-haven, taking prices in India back over Rs 50,000 level.

Gold futures rose on October 5, Monday, marking their highest settlement in a week, with a weaker U.S. dollar and fresh talk of a stimulus deal helping the metal prices.

However, gold’s rise remains threatened by an increased appetite for risk as markets react to promising developments in President Donald Trump’s rebound from coronavirus pandemic.

According to Michael Armbruster, the managing partner at Altavest, renewed hope for a fiscal stimulus deal, also provided support for the yellow metal.

Silver for December delivery gained 53 cents. Which equals 2.2%, and settled $24.56 an ounce while it increased by 4.1% last week.

Gold for December delivery boosted $12.50 or 0.7%, to $1,920.10 an ounce, after it rose by 2.2% in the last week.

Meanwhile, the gold was trading at $1,910.82 per troy ounce in the international spot market, down marginally. Year to date, the metal has delivered a 26% return on investments. Silver was trading at $24.28 per ounce, with calendar year returns at 36%.

According to Manoj Kumar Jain, Commodity and Currency Researcher, Gold will again hit $1950-1980 per troy ounce, probably this week or by the next. On Multi Commodity Exchange, it should hold Rs 50,000, and the level around 50,000-50,200 should be a good buying opportunity and Rs 51,200 is very likely by this weekend.

We can suspect gold to move to Rs 51,800

Vandana Bharti, Commodity Research at SMC Global, reported that the upside movement should be a little slower as Trump has returned to the White House (from the hospital). If the stimulus comes, we may see further growth in gold prices due to fear of inflation. Besides, we can suspect gold to move to Rs 51,800, and the lower side should be about Rs 49,500.

In Tuesday’s trade, gold futures were flat at Rs 50,620 per 10 grams on MCX. In the spot market, the highest purity gold was trading around Rs 50,498, according to a price chart maintained by India Bullion and Jewellers Association (IBJA).

With other metals, January platinum increased by 1.5% settling at  $904.70 an ounce. While December palladium gained 2.3% and hit $2,378.40 an ounce.

December copper decreased by 0.5% to $2.963 a pound. According to analysts at Sevens Report Research, a few factors amplified the drops in copper last week, including multiple Asian markets being closed for holidays.