Big action in Gold on two big back-to-back events
Donald Trump’s election as the next US President and the Narendra Modi led Indian government’s move to phase out existing Rs 500 and Rs 1000 notes as part of a crackdown on black money.In the domestic market gold was up intra-day by Rs 1017 or 3.29 per cent and trading at Rs 30,897 per 10 grams, while in the international market it was trading up 0.38 per cent at $ 1314 an ounce. It had risen to $1337.40.
Experts believe that the political change in the US, along with uncertainties over whether US Fed would go for a hike in interest rates in December would lead to gold prices remaining firm.
“The positive momentum in gold is likely to continues, especially if global equities crash after Donald Trump’s election as US President. There is also uncertainty over whether the US Fed would go for a rate hike in December after the political development,” Hareesh V, Research Head, Geofin Comtrade Ltd, told FeMoney.
He said that gold’s immediate resistance was $1380 and if it closes above that the next target would be $1450.
Aasif Hirani, Director, Tradebulls, expects the yellow metal to head back to $1340-$1350 on Trump’s win. “Gold will remain as safe haven asset. Trump’s victory is seen as major risk-off for equity markets and increase in uncertainty. This will propel traders and investors to deviate towards gold,” Hirani said.He feels on MCX gold is expected to head towards Rs 31700-31900.
Biren Vakil, CEO Paradigm Commodity Advisors, feels domestic gold will trade in the range of Rs 27,000-35,000. “There are too many uncertainties in wake of phasing out of Rs 500 and Rs 1000 notes by the government,” he said.
Personal finance advisor, Anil Rego, founder and CEO, Right Horizons says the long-term picture for gold would largely depend on the policies adopted by the new US President, Donald Trump. “What trump does remains to be seen,” Rego said.
Source: Financial Express