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Time of India
21-05-2025
- Business
- Time of India
Equity surge takes sheen off gold, prices fall 7% from peak
MUMBAI: The ongoing risk-on rally in global markets, after geopolitical and tariff-related uncertainties subsided in the last few days, led to a correction in the price of gold, which is down about 6-7% from its all-time peak of $3,500/ounce level. In the domestic market too, gold is currently trading at around Rs 93,000/10gm level. It is down from Rs 1 lakh level about a month ago and at about Rs 97,000 level on May 9, the day before the Indo-Pak ceasefire between the two nuclear-powered neighbours. According to Renisha Chainani, head of research at Augmont, a gold trading platform, there are at least two fundamental reasons for the sluggish demand for gold in the international markets. "Gold is still struggling, and prices could drop this week as the market takes a wait-and-see stance as the initial reaction to the US credit rating fades and there is some hope that Ukraine and Russia could reach a truce," Chainani said. Following a two-hour phone call with US President Donald Trump on Monday, Russian President Vladimir Putin said that attempts to put an end to the war are on track and he's committed to collaborate with Ukraine on a memorandum pertaining to a peace agreement. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo Since gold prices , among other reasons, also thrive on economic and geopolitical uncertainties, a ceasefire between Russia and Ukraine is sure to see some slide in the price of the yellow metal, industry analysts said. On Tuesday, on MCX, gold futures for June delivery were trading at about Rs 93,800 mark, while in the spot market, it was trading at about Rs 93,000. Early on Tuesday, in the international market, gold was trading below the $3,215 mark as investors' focus was shifting to potentially easing US-China trade tensions, a report by Kotak Securities said. Early last month, after Trump announced a series of tariff-related policies for the world's largest market, it elevated global economic and market uncertainties. As a result, by the third week of April, gold prices scaled above the psychologically important Rs 1 lakh mark. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
18-05-2025
- Business
- Time of India
Gold price prediction: Will gold prices drop to Rs 88,000 per 10 grams? Experts see downside, here's what investors should do
Gold price outlook: Axis Securities has observed that gold prices are exhibiting pressure amid significant macro changes. (AI image) Gold price outlook : Gold prices have experienced substantial decline, dropping approximately 7% from their highest point of Rs 99,358/10 grams recorded on April 22 on the MCX. The precious metal is currently at risk of ending below the 50-day moving average, something not seen since December. But where are gold prices headed and what should investors do if the gold rate dips to Rs 88,000 per 10 grams? According to Axis Securities, gold is currently testing the lower range of a 50-day moving average envelope (+3%), which has provided support during all decreases since November 2024. The firm has identified May 16 to May 20 as a vital period for possible trend changes. Their analysis indicated $3,136 as an essential support level in international markets, suggesting that if prices fall below this point, they could potentially decline towards the $2,875-$2,950 range, according to an ET report. Also Read | After gold prices hitting Rs 1 lakh, is it time for silver to rally? Axis Securities has observed that gold prices are exhibiting pressure amid significant macro changes, raising concerns about potential further decline if prices fall below a crucial support level. The firm has noted that reduced expectations for US Federal Reserve rate cuts have affected the demand for secure investments like gold. Additionally, diminished concerns about trade-war impacts on growth have led to increased bond yields, reducing gold's attractiveness. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ethiopia: New Small Electric Car For Seniors. Prices Might Surprise You. Electric Cars | Search Ads Undo The firm pointed out that gold's lack of yield, combined with increasing interest rates, is diminishing its appeal as an investment option. Will Gold Prices Dip To Rs 88,000? Augmont's Head of Research Renisha Chainani believes that gold prices are experiencing significant pressure due to ongoing geopolitical issues and reduced market demand. According to her analysis, "Gold prices bounced up about $100 (Rs 1,500) from their intraday lows as investors appeared to be shifting back to safe-haven assets due to a slowdown in the pace of discussions between Russia and Ukraine and less-than-expected US data". She identified potential opportunities for investors during this period of market pressure. She further stated, "As gold prices have broken the Double-top neckline support of $3200, more downside is expected up to $3000-50 (Rs 87,000 - 88,000) in the short term," suggesting that whilst current trends appear negative, there could be opportunities for long-term investors at reduced price points. The analysis from Augmont indicates substantial downside risk in the technical assessment of gold. Their report establishes support at Rs 92,000/10 gm and resistance at Rs 94,000/10 gm for Indian gold. Despite this confined trading range, the overall market sentiment suggests possible further price reductions. Also Read | India has the world's 7th highest gold reserves! Why is RBI buying gold and how does it help the Indian economy? Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, expresses a moderately positive outlook, noting that gold's fundamental strengths remain stable despite present market adjustments. "While gold's long-term fundamentals are fundamentally intact, a short-term view of its price trajectory remains vulnerable to macroeconomic sea-changes. Investors still need to be especially attentive to what plays out globally with a diversified strategy in the event of a price downside tail," he said. Kothari cautioned about the possibility of significant price adjustments should worldwide economic recovery exceed current projections. "Nonetheless, a steep correction could also be on the horizon. If global economies start to see speedier recoveries, signaling the end of the necessity of risk-off trades, gold could slip downward to the $3000-$3050 range," he added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
17-05-2025
- Business
- Time of India
Gold prices may fall down to Rs 88k/10 gm. Should you accumulate on dips? Here's what analysts say
Gold prices have been under significant pressure lately, falling by nearly 7% from their peak price of Rs 99,358/10 grams made on April 22 on the MCX. The yellow metal now threatens to close below the 50-day moving average for the first time since December. Domestic brokerage firm Axis Securities noted that gold prices are showing signs of stress amidst key macro shifts, with concerns mounting over a potential break below a critical support band that could trigger further downside. The brokerage firm highlighted that the expectations of further rate cuts by the US Federal Reserve have cooled, impacting the demand for safe-haven assets like gold. Furthermore, trade-war-related growth fears have eased, leading to a rise in bond yields, which is further undermining gold's appeal. With gold offering no yield, rising interest rates are making it less attractive as an investment asset, the firm added. According to Axis Securities, gold is currently testing the lower band of a 50-day moving average envelope (+3%), which has successfully supported all dips since November 2024. They identified a key timeframe from May 16 to May 20 as crucial for a potential trend reversal. The report also pinpointed $3,136 as a critical support level in the international markets, with a break below this point potentially opening the doors for further declines toward the $2,875-$2,950 range. Meanwhile, Renisha Chainani, Head of Research at Augmont, shared similar concerns, stating that gold prices have been under considerable pressure, driven by a combination of geopolitical tensions and weakening demand. In her report, she noted, 'Gold prices bounced up about $100 (Rs 1,500) from their intraday lows as investors appeared to be shifting back to safe-haven assets due to a slowdown in the pace of discussions between Russia and Ukraine and less-than-expected US data'. Chainani also emphasized the potential buying opportunities emerging amidst the downside pressure. Also read: Markets don't lie! Stock tickers in Shenzhen, Mumbai expose Pakistan's claims of victory in 4-day aerial fight 'As gold prices have broken the Double-top neckline support of $3200, more downside is expected up to $3000-50 (Rs 87,000 - 88,000) in the short term,' she added, suggesting that while the immediate outlook may be bearish, long-term investors may find value at lower levels. The technical outlook for gold also points to significant downside risk. According to the report from Augmont, the Indian gold support level stands at Rs 92,000/10 gm, while the resistance level is at Rs 94,000/10 gm. This indicates a narrow trading range, but with the broader market sentiment leaning towards the downside, further declines cannot be ruled out. Gold outlook ahead Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, conveyed a slightly more optimistic view, stating that gold's long-term fundamentals remain intact despite the current correction. 'While gold's long-term fundamentals are fundamentally intact, a short-term view of its price trajectory remains vulnerable to macroeconomic sea-changes. Investors still need to be especially attentive to what plays out globally with a diversified strategy in the event of a price downside tail,' he said. Kothari also warned of a potential steep correction if global economies begin to recover at a faster pace than anticipated. 'Nonetheless, a steep correction could also be on the horizon. If global economies start to see speedier recoveries, signaling the end of the necessity of risk-off trades, gold could slip downward to the $3000-$3050 range,' he added. Adding to this optimistic sentiment, Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies at Angel One stated that easing geo-political tensions between India-Pakistan, Russia-Ukraine, and ease of tariff situation between US-China, shifting inflation expectations in the US, are a combination of factors driving gold prices correction in the recent weeks. However, he noted that the recent correction in gold prices have given investors an avenue to buy at lower levels. 'Our advice to investors is to accumulate on dips at around the 90,000/10gm mark. The upside potential for gold prices can be around Rs.97000/10 gms mark from a fortnight perspective,' Mallya added. The current scenario presents a complex outlook for gold investors, with multiple analysts indicating downside risks, but also highlighting potential buying opportunities for those with a long-term investment horizon. Also read: Gold forecast: Analysts see further correction as prices hit 1-month low ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Business Mayor
17-05-2025
- Business
- Business Mayor
Gold prices may fall down to Rs 88k/10 gm. Should you accumulate on dips? Here's what analysts say
Domestic brokerage firm Axis Securities noted that gold prices are showing signs of stress amidst key macro shifts, with concerns mounting over a potential break below a critical support band that could trigger further downside. The brokerage firm highlighted that the expectations of further rate cuts by the US Federal Reserve have cooled, impacting the demand for safe-haven assets like gold. Furthermore, trade-war-related growth fears have eased, leading to a rise in bond yields, which is further undermining gold's appeal. With gold offering no yield, rising interest rates are making it less attractive as an investment asset, the firm added. According to Axis Securities, gold is currently testing the lower band of a 50-day moving average envelope (+3%), which has successfully supported all dips since November 2024. They identified a key timeframe from May 16 to May 20 as crucial for a potential trend reversal. The report also pinpointed $3,136 as a critical support level in the international markets, with a break below this point potentially opening the doors for further declines toward the $2,875-$2,950 Renisha Chainani, Head of Research at Augmont, shared similar concerns, stating that gold prices have been under considerable pressure, driven by a combination of geopolitical tensions and weakening her report, she noted, 'Gold prices bounced up about $100 (Rs 1,500) from their intraday lows as investors appeared to be shifting back to safe-haven assets due to a slowdown in the pace of discussions between Russia and Ukraine and less-than-expected US data'. Read More Will the ECB Cut Interest Rates Amid Trade Tariff Turmoil? Chainani also emphasized the potential buying opportunities emerging amidst the downside pressure. Also read: Markets don't lie! Stock tickers in Shenzhen, Mumbai expose Pakistan's claims of victory in 4-day aerial fight 'As gold prices have broken the Double-top neckline support of $3200, more downside is expected up to $3000-50 (Rs 87,000 – 88,000) in the short term,' she added, suggesting that while the immediate outlook may be bearish, long-term investors may find value at lower levels. The technical outlook for gold also points to significant downside risk. According to the report from Augmont, the Indian gold support level stands at Rs 92,000/10 gm, while the resistance level is at Rs 94,000/10 gm. This indicates a narrow trading range, but with the broader market sentiment leaning towards the downside, further declines cannot be ruled out. Gold outlook ahead Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, conveyed a slightly more optimistic view, stating that gold's long-term fundamentals remain intact despite the current correction. 'While gold's long-term fundamentals are fundamentally intact, a short-term view of its price trajectory remains vulnerable to macroeconomic sea-changes. Investors still need to be especially attentive to what plays out globally with a diversified strategy in the event of a price downside tail,' he said. Kothari also warned of a potential steep correction if global economies begin to recover at a faster pace than anticipated. 'Nonetheless, a steep correction could also be on the horizon. If global economies start to see speedier recoveries, signaling the end of the necessity of risk-off trades, gold could slip downward to the $3000-$3050 range,' he added. Adding to this optimistic sentiment, Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies at Angel One stated that easing geo-political tensions between India-Pakistan, Russia-Ukraine, and ease of tariff situation between US-China, shifting inflation expectations in the US, are a combination of factors driving gold prices correction in the recent weeks. However, he noted that the recent correction in gold prices have given investors an avenue to buy at lower levels. 'Our advice to investors is to accumulate on dips at around the 90,000/10gm mark. The upside potential for gold prices can be around Rs.97000/10 gms mark from a fortnight perspective,' Mallya added. The current scenario presents a complex outlook for gold investors, with multiple analysts indicating downside risks, but also highlighting potential buying opportunities for those with a long-term investment horizon. Also read: Gold forecast: Analysts see further correction as prices hit 1-month low (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
India Today
30-04-2025
- Business
- India Today
Akshaya Tritiya 2025: Is falling gold price an opportunity to buy more?
Gold prices have been falling this week, and as Akshaya Tritiya approaches, many people are wondering whether now is the right time to buy gold. On Wednesday, spot gold was down by 0.4% at USD 3,302.58 an ounce as of 4:30 am GMT, while US gold futures dropped by 0.7% to USD 3, fall in gold prices came as the US dollar strengthened and tensions in global trade talks started to ease. A stronger dollar makes gold more expensive for buyers using other currencies, which can push demand India, Akshaya Tritiya is considered a good day to buy gold. It is a time when people usually invest in gold as it is believed to bring good luck and prosperity. But with gold prices now close to all-time highs, near Rs 96,000 per 10 grams, many buyers are thinking twice before making big purchases this year."Over the last 20 years, gold has delivered approx.15% CAGR, which is quite robust, especially in comparison with many fixed-income instruments and even some equity segments during market volatility," said Dr Renisha Chainani, Head of Research at Augmont. Akshaya Tritiya Gold Returns in past 20 years. (Source: Augmont) She added that gold has also acted as a hedge against inflation, currency depreciation, and geopolitical ARE GOLD PRICES FALLING?Several reasons have helped gold prices rise in recent ongoing conflicts like the Russia-Ukraine war, the unrest in the Middle East, and trade tensions between the US and China have increased demand for safe-haven assets like concerns around the world have also driven investors to buy gold, which is often seen as a safe bet during times of rising prices. Many central banks, including those in India and China, have been increasing their gold top of that, as the rupee has weakened against the US dollar, gold has become more expensive in the local Renisha Chainani believes this festive season can still be a good time to invest in says that buying gold on Akshaya Tritiya holds both cultural and financial value. According to her, gold can help balance a person's investment portfolio, especially when the stock market is going through a tough added that gold is likely to stay strong in the near future as global uncertainties remain, and interest rate cuts are expected in the US. Demand for digital gold and investment-grade gold is also increasing, as more people are turning to easy and transparent ways to buy experts also suggest caution due to the current high prices. With gold trading near record levels, it may not be the best time to make large or rushed purchases. If trade tensions cool down, or if interest rates rise faster than expected, gold prices could fall. Also, if investors start moving their money back into stocks or other high-risk assets, the demand for gold might go handle this situation wisely, experts advise a smart buying than making a large one-time purchase, buyers could consider smaller, planned investments through methods like gold SIPs (Systematic Investment Plans) or by purchasing digital gold. Starting with a small investment on Akshaya Tritiya can be a good entry like gold mutual funds or exchange-traded funds (ETFs) are becoming more popular for this who still want to buy physical gold can look at small coins or light jewellery, which carry lower making charges and are easier to sell later. It's also important to treat gold as a long-term investment and stay invested for at least three to five years to see good Kamboj, Vice President of the Indian Bullion and Jewellers Association (IBJA), shared her view on the current market said, 'In the current scenario of geopolitical tensions and currency fluctuations, gold continues to emerge as a reliable asset. While there might be a possibility of short-term price correction, the yellow metal will continue to remain a safe-haven asset.'advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
