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Gold and silver are shining once again, due to which the enthusiasm among investors has increased. Weak US dollar, increasing geopolitical tensions and safe-haven demand have strengthened this rally. Experts say that this rally is not over yet, but further increase in prices is possible.
New Delhi. After the slowness of the last few days, the prices of gold and silver are showing a rise again. Global uncertainty, weak US dollar and safe-haven demand have supported both the expensive metals. On Friday, gold was trading at around Rs 1.21 lakh per 10 grams and silver at Rs 1.48 lakh per kg on MCX. Experts say this is just a ‘breathing space’ and not the end of the rally.
Weak dollar and geopolitical tension become support
According to an expert, the fall in the dollar index and the fear of a government shutdown in America have again attracted investors towards gold. He said that technically the level of $3,855 is important for gold, while silver rests on the support of $46.70. In the Indian market, gold is expected to get support and resistance in the range of Rs 1,19,870 to Rs 1,21,600 and silver in the range of Rs 1,45,750 to Rs 1,48,340.
Gold demand increased due to weakness of American economy
According to Augmont Gold report, rising unemployment and historic government shutdown in America has pushed investors towards safe investments. More than 1.53 lakh people lost their jobs in October, which is the worst figure since 2003. Experts believe that the Federal Reserve may now adopt a soft stance, which will benefit non-interest bearing assets like gold.
What next?
An expert says that gold may remain in the range of Rs 1,19,500 to Rs 1,22,500 in the coming days. However, if prices break above $4,025, new record highs may also be seen. At present, amidst the weak dollar and increasing geopolitical tension, it is certain that the shine of gold is not going to fade away.
