MCX Gold Samvat 2078 Forecast: Yellow metal poised to recover Rs 50,000 as trend may remain moderately bullish – News Couple
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MCX Gold Samvat 2078 Forecast: Yellow metal poised to recover Rs 50,000 as trend may remain moderately bullish


The tactical gold allocation should be increased in addition to the strategic asset allocation

by Keshtej Borohit

In India, it is a common mindset to recognize gold as the safest investment. Amid the festive season, gold prices have jumped to their best levels in the past few trading sessions. Jewelers are anticipating a huge uptick in sales and sales on Diwali. In 2021 so far, gold prices have continued their sideways to bearish trend as prices have settled around the $1700 support level several times. Hoping for a faster economic recovery and investor interest, the yellow metal has generated better returns so far this year.

The outlook for gold remains marginally bullish near the festivals in India. Given the unstable global climate, which is stimulating liquidity flows towards the yellow metal as a safe haven, gold will certainly play an important role in the exposure of the asset class. As part of the investment strategy, a strategic asset allocation should be established, taking into account future cash requirements.

Other options include gold ETFs and sovereign gold bonds, as well as buying physical gold. Both tools provide advantages such as a greater return on actual gold, tax advantages, and assured purity, among others.

Gold Mix Gold Diwali Samvat 2078The outlook for gold remains marginally bullish near the festivals in India.

The primary trend is a sideways to moderate bearish trend on the daily chart of Comex futures. It could be a trend reversal and a turn to bullish momentum if the price breaks above the $1800 mark. The mid-range should be between $1,840 and $1,725. On the downside, the key support level is at $1,684 – the June 2021 low.

In India, MCX Gold price remained bearish at Samvat 2077. Initially, the price of gold was trading around 52000 levels. After that, prices fell to the worst level in March 2021, falling below 44,000. In the past few months, the price has been skewed Towards the downside around the levels from 46000 to 48000. However, the price rose recently after it had support near 45500. The main resistance level should be 48450 and 49500.

At the beginning of Samvat 2078, gold could be moderately bullish and other precious metals may encounter obstacles around the resistance level. If the price continues above this resistance, we may expect more bullish momentum towards 50,000.

The tactical gold allocation should be increased in addition to the strategic asset allocation. Exposure to gold during the ongoing festive season should be done in the most cost-effective manner. As the economy recovers from the effects of Covid-19, investors may remain cautious while taking any long-term position in precious metals.

(Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research. The opinions expressed are those of the author.)

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