Gold Price Forecast : Gold has caught a fresh bid-wave in early Europe following a brief consolidation, as the bulls look to conquer $1850, as the recovery from two-month lows gathers steam.
Broad-based US dollar weakness amid the revival of the reflation trades on increased prospects of the US $1.9 trillion stimulus package, continues to favor the gold bulls. Gold is considered a hedge against inflation and currency debasement.
Gold Price Forecast Reports
From a short-term technical perspective, gold’s outlook appears constructive after a symmetrical triangle breakout was confirmed on the four-hour chart.
Despite the upside break, the gold bulls need to find acceptance above the horizontal 100-simple moving average (SMA) at $1852.
Gold prices are likely to see a sharp rise towards the 200-SMA of $1875 on a sustained move above the powerful 100-HMA barrier.
The relative strength index (RSI) points north above the 50.00 level, suggesting that the bullish bias remains intact.
Alternatively, strong support near $1827 could limit any pullbacks. That level is the confluence of the triangle resistance now support and 50-SMA.
Sellers would then gear up for a drop towards $1818, the pattern support.
For the second day in the row, the price of gold has gone up. According to India Bullion and Jewellers Association Ltd. (IBJA), the fine gold was priced at Rs 47,967 per 10 gram during the opening session.
Compared to the opening session of February 8, the price of fine gold today was up by Rs 578 per 10 gram. On February 8, the price of fine gold per 10 gram was Rs 47,389.
Meanwhile today, the price of 22-carat gold is Rs 43, 938 per 10 gram; and 18-carat is Rs 38,370 per 10 gram, as per IBJA rates. Over the last one week, the price of gold dropped by around Rs 1,685 per 10 gram. However, it looks like it is slowly making up for the loss.
Meanwhile, the silver price has also increased. Today, the metal is priced at Rs 69,518 per kg, up by 1,165.
This rise in gold is mainly driven by the rise in gold prices in the global market. With investors expecting more stimulus by the US, the prices of yellow metal have gone up for the third day in the international market.
On the Multi Commodity Exchange (MCX), the gold futures for April rose to Rs 48,044 (at 1.45 pm), up by 0.43 per cent. At the same time, the silver futures trade in March was up to Rs 70,230 (at 1.45 pm).
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