Gold is considered as a hedge against inflations and currency debasement By Anuj Gupta, Angel Broking
On Thursday, Spot Gold prices plunged over 2.2 percent to close at $1792.3 per ounce as appreciating Dollar on hopes of improvement in the US economy and rising US treasury yield shifted the investors away from Gold. Strengthening of the US Currency made the Dollar denominated Gold less desirable for other currency holders. Also, US private payrolls recovered indicating towards an improvement in the labour market. The losses were capped as additional stimulus measures raised inflation worries which underpinned the demand for the yellow metal.
Gold is considered as a hedge against inflations and currency debasement. Also, stricter lockdowns in major economies like UK, Germany, France and China due to resurgence of the virus dampened the outlook which underpinned Gold prices. Spot silver prices ended lower by 2.1 percent to close at $26.3 per ounce while Silver prices on the MCX dipped over 2.6 percent closing at Rs.66818 per kg. Boost in the demand for Silver mining stocks and exchange-traded funds (ETF) backed by physical silver bars, following the social media posts led to the solid rally in Silver in the earlier trading sessions.
Alarming increase in the covid19 cases around the globe and hopes over additional stimulus by US is expected to levy some support for Gold.
As of today Traders can go for buy in Gold at 46500 levels with the stop loss of 46200 levels for the target of 47300 levels. They can also for buy in Silver at 67000 levels with the stop loss of 66000 levels for the target of 68500 levels.
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