Gold Rate: Pritam Patnaik, Head – Commodities, HNI & NRI Acquisitions, Axis Securities, said during an interview with leading daily, that by the end of this year, the price of gold on the MCX will likely reach Rs. 54000 per 10 grams and the price of silver will reach Rs. 64,000 per kg. Pritam Patnaik stated that the US Federal Reserve is anticipated to modify its interest rate policy approach from being extremely Hawkish to Dovish on the back of early evidence of the inflation cooling. This will result in lesser rate increases, which will reduce the Dollar Index and Bond Yields. The price of gold and silver is likely to increase as a result. Charts revealed the strength in prices of gold and silver.
MCX gold is anticipated to reach a new record high of Rs. 60,000 per 10 grams, and silver on the exchange might reach Rs. 70,000 per kg next year.
Here are the takeaways.
What are your predictions for MCX gold and MCX silver at year’s end?
We anticipate MCX gold prices to reach Rs. 54,000 per 10 grams and MCX silver prices to reach Rs. 64,000 per kg by the end of this calender year.
What are the main reasons for the yellow metal going forward?
The causes of the decline in bullion prices will make way for the upswing. The Dollar Index and Bond Yields had an unheard-of rise in response to an increase in interest rates.
The Fed is anticipated to switch from being extremely hawkish to being dovish as we begin to see early signs of the inflation slowing down or possibly plateauing off. This will suggest lesser rate hikes, which will cause the Dollar Index and Bond Yields to decline. This is a catalyst that will raise the price of gold and silver.
What investment strategy should be used in the current market environment: purchase on dips, sell on the rise, or remain neutral?
The recommended strategy moving ahead must be to buy on dips in the current market environment.
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What patterns do you notice in the MCX gold and silver charts?
Gold prices have broken out of a symmetric triangle pattern on the weekly chart, which is bullish for the price. The price of gold is approaching its multi-month high of 53,000 levels. By the end of the current year, the 56,000–60,000 level will be accessible if there is consistent purchasing and a monthly closure above the resistance level. This week, silver has outperformed gold. Over 7% more has been spent on goods and services. Prices have broken out of the Inverse Head and Shoulder Pattern on the weekly chart, which is a bullish indication for the market. We can anticipate prices to reach 66,000 levels by the following year if the trend continues. Prices may possibly reach 70,000 levels above it.
If the US dollar increases, should investors buy gold?
A non-interest-yielding asset like gold lost its lustre as a result of the persistent increasing interest rate scenario. As a result, in a situation where interest rates are declining, a rising USD will have little effect on gold prices.
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