Rewind 2023: Gold prices at record highs
image for illustrative purpose
Gold prices have been on a stellar run recently, reaching all-time highs of Rs 62,700 per 10 grams at MCX as on December 01. As US interest rates start to fall, gold prices are expected to rise with a minimum target of $2,200 per ounce in a period of 2 years.
Talking to Bizz Buzz, Anil Kumar Bhansali, Head of Treasury and ED, Finrex Treasury Advisors says, “Fundamentally, gold moves along with risk assets except in case where it is a hedge against inflation. The geo-political tensions will also cause fold to rise further. Also, most central banks are diversifying their reserves towards gold after the recent sanctions episode against Russia.”
Also, as China and India continue their demand for gold, and the economic crisis in China continues,gold is likely to be in demand. RBI bought nine tonnes of gold till September in the outgoing year. US GDP growth is being closely watched to get a view on the US economy, which could give gold a short-term pullback. But until it stays above $2,000 per ounce, the technicals are bullish to take it higher.Technicals suggest $2,050 as first resistance.
