Know where gold can reach.
After the data of record inflation in America came out, a tremendous jump was registered in gold in the international and domestic market on Friday. Commodity market experts are seeing this as a break-out and have given a new target for the traders.
Inflation rate in the US in the month of May (US inflation data) remained at the highest level in 41 years. Gold and Silver in International and Domestic Market due to record inflationGold and Silver Price) recorded a huge jump. In the international market, spot gold closed at $ 1875.20 per ounce with a gain of $ 22.40 (1.21 percent) on Friday. In the domestic market on MCX, gold for delivery in August rose by Rs 689 to close at Rs 51694 per ten grams on Friday. Gold continued to trade in a range throughout the week, but on Friday, spot gold broke out at $ 1865 and reached the level of $ 1875.
Anuj Gupta, Commodity Expert, IIFL Securities said that due to weakness in dollar and rise in crude oil, the price of gold has strengthened. In the international market, Brent crude closed at $ 122, while the dollar index rose 1 percent to close at 104.235. He said that the price of gold will rise further in the coming days. The main reason for this is record inflation rate and weak employment data.
Strong support at Rs 50500
In the next few weeks, there will be strong support for gold in the domestic market at the level of 50500 and it can reach the level of 52200. There is a strong barrier. There is a strong support for spot gold at $1820. Its next target will be $1920.
52200 rupees first target for gold
Talking about the immediate support, there is strong support on MCX at the level of Rs 51000. The first target will be Rs 52200. Buying advice will be at the level of Rs 50900 to Rs 51100. For this, Rs 50500 will act as a stoploss. In bullish condition, it can reach the level of Rs 52200-52500. Talking about spot gold, there is immediate support at $1840. Very soon it can touch the level of 1900 to 1920 dollars.
Silver will still trade in the range
Silver has also gained momentum. On the last trading day of the week, silver for delivery in July on MCX rose by Rs 509 to close at Rs 61920 per kg in the domestic market. There is a strong support for silver at the level of 60 thousand rupees and there is a strong resistance at the level of 63 thousand. Right now silver will trade in this range. Investors can buy at lower levels.
Gold price rise due to inflation
Market experts say that inflation has become a serious challenge before the world. In such a situation, central banks around the world are moving in the direction of increasing the interest rate. When inflation rises, investors are attracted to gold for hedging and due to increased demand, its price jumps. However, the dollar is strengthening due to the increase in interest rate, which affects the demand. In such a situation, both the factors are working and gold has been in a range for some time now.
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