Gold poised to moved higher from current levels: Emkay Wealth Private Limited
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Emkay Wealth Management, the wealth management and advisory arm of Emkay Global Financial Services have released a note on gold, price outlook, and the reason for the rally in the precious metal prices given the current setup. The note suggest, the prices for the yellow metal are poised to open a new chapter. The levels 1860 and 1830 are strong support levels.
A new chapter for Gold
Gold has posted double digit gains in 2022. The yellow metal has already posted over 3% gains in the month of January 2023. The current setup seems to indicate a re-run of 2022. Gold seems to be poised to open a new chapter in term of its price trajectory. The levels 1860 and 1830 are strong support levels.
Institutional and China buying in Gold
Gold purchases in international markets in the last one year was 4000 tons of which 1400 tons took place in Q4. There was institutional buying too. Apart from this the jewellery demand revived in China as the Chinese government relaxes Covid-19 related restrictions and reopened its economy. China is one of the biggest consumer of gold, accounting for over 30% of global jewellery demand.
Slowdown/Recession fears
The general expectation that there will be a slowdown in economic activity in the major economies also is helping gold though the high inflation never propelled gold to higher levels.
Dollar index
The Dollar Index is currently in a revival mode towards 103-106, could lead to some dips in gold prices, these dips may be opportunities to initiate fresh exposure to gold. Short term exposure with a 1-year time horizon could be taken through gold funds, long term through Sovereign Gold Bonds.
Above views are of the author and not of the website kindly read disclaimer
