Gold Jackpot Tips: Gold Hit 1000 Points 60200 To 59325. On Monday’s trade in the Multi Commodity Exchange (MCX) gold prices rose by Rs 1000 to Rs 60,455 per 10 gram in futures trade as investors opened new positions in response to strong spot demand.
- बुलियन व्यापारियों को लाभ बुक करने की सलाह और कोई नई खरीद करने से पहले सुधार की प्रतीक्षा करें।
- Gold price has rallied over 10% in the past two weeks.
- Trust issues in banking sector continue despite the UBS takeover of Credit Suisse.
- Federal Reserve decision looms over current safe-haven dominance.
Gold futures for April delivery increased by Rs 1000, or 1.64 percent, to Rs 60,455 per 10 gramme on the Multi Commodities Exchange, where 8,789 lots were traded.
Globally, gold was priced at USD 2,020.70 per ounce, up 1.53 percent.
Meanwhile Shobhit Mehrotra, Head-Fixed income, HDFC AMC sharing his outlook for Indian Fixed Income Market in the view of the abrupt failure of two regional banks in the US along with turmoil in a large European bank said that collapse has significantly raised fear of contagion risk spreading across the financial sector.
Gold price rally at mercy of Federal Reserve conundrum
With the Federal Reserve meeting within the market sight this week, market players are asking themselves whether this flight to safe haven will keep benefiting Gold, or if the US Dollar can make a comeback.
“At this point, it looks very unlikely the Fed will opt for a 50 bps rate hike. If that were to be the case, the initial reaction could provide a boost to the USD and weigh on yellow metal. However, such a decision could also revive fears over a deepening financial crisis and trigger a fresh bout of flight to safe-haven bonds, causing US T-bond yields to fall sharply and opening the door for a leg higher in Gold price.
At the other extreme, markets are likely to go back into panic mode even if the Fed were to leave its policy rate unchanged to address the tightening of financial conditions. Investors could assess such a decision as the situation in the banking sector being much worse than what they were led to believe.”
Forecast poll experts not buying into Gold price hype
Despite the huge bullish momentum in Gold price, FXStreet Forecast Poll respondents are
Gold price rally at mercy of Federal Reserve conundrum
With the Federal Reserve meeting within the market sight this week, market players are asking themselves whether this flight to safe haven will keep benefiting Gold, or if the US Dollar can make a comeback.
“At this point, it looks very unlikely the Fed will opt for a 50 bps rate hike. If that were to be the case, the initial reaction could provide a boost to the USD and weigh on yellow metal. However, such a decision could also revive fears over a deepening financial crisis and trigger a fresh bout of flight to safe-haven bonds, causing US T-bond yields to fall sharply and opening the door for a leg higher in Gold price.
At the other extreme, markets are likely to go back into panic mode even if the Fed were to leave its policy rate unchanged to address the tightening of financial conditions. Investors could assess such a decision as the situation in the banking sector being much worse than what they were led to believe.”
Forecast poll experts not buying into Gold price hype
Despite the huge bullish momentum in Gold price, GSR Poll respondents are way more cautious, with the consensus not buying the current hype of yellow metal bulls. The average end-of-the-week target for the bright metal in the poll $1,948, with 50% of the experts in bearish territory.
This might reflect a cautious market positioning ahead of a super busy week, with the FOMC Meeting looming, but can also be read in a counter-intuitive way, with US Dollar bulls (or US Treasury bond bears) vulnerable to more losses if the nervousness of the market persists throughout the week.
, with the consensus not buying the current hype of yellow metal bulls. The average end-of-the-week target for the bright metal in the poll $1,948, with 50% of the experts in bearish territory.
This might reflect a cautious market positioning ahead of a super busy week, with the FOMC Meeting looming, but can also be read in a counter-intuitive way, with US Dollar bulls (or US Treasury bond bears) vulnerable to more losses if the nervousness of the market persists throughout the week.
Over the weekend, UBS Bank agreed to buy Credit Suisse in a historic $3.3 Billion deal. But this still may not be enough to prevent risk of contagion spreading across the broader banking sector – and the global economy.
On Friday, US customers withdrew a total of $42 billion from their accounts. That’s $4.2 billion an hour, or more than $1 million per second for ten hours straight.
Gold price resumes the rally that started at the beginning of March when Gold found a floor at circa $1,805. Since then, it has climbed over $200 to above $2,000. The precious metal is in a short and medium-term uptrend. Upside momentum is strong, unless it turns on a dime, it should continue rising.
“On the flip side, Gold buyers need to take out the multi-month high at $1,991 in order to aim for the $2,000 threshold. Acceptance above the latter is critical to resuming the recent uptrend toward the $2,050 static support.”
Gold price pushed higher by bulls as safe-haven demand rockets on global banking fears.
UBS takeover of troubled Credit Suisse only temporarily calms markets.
Gold gains from subdued US Dollar as bets for next Fed hike fade.