"Gold Reaches All-Time High: Consider Selling"
Reasons for Lifetime High: Morning Asian Session Record High
* Gold Future June Contract: During the morning Asian trading session, the gold futures for June contract soared to Rs. 71,709 per 10 grams, marking a historic high.
* April Price Surge: Over the period from April 1st to April 10th, gold prices surged by a significant 5.6%. On April 1st, prices stood at Rs. 67,888 per 10 grams, escalating to Rs. 71,709 by April 10th.
* April 1st: Rs. 67,888 per 10 grams.
* April 10th: Rs. 71,709 per 10 grams.
Drivers Behind Rising Gold Rates
* Central Bank of China's continuous gold purchases for the past 17 months have bolstered demand and supported price increases.
* Speculation surrounding the American Federal Reserve's potential 0.25% interest rate decrease added upward pressure on gold prices, with the likelihood decreasing from 57% in March to 49% in April, as reported by the CME Group.
* Recent geopolitical events, including earthquakes in Taiwan and tensions between Iran and Israel, have increased market uncertainty, prompting investors to seek refuge in safe-haven assets like gold, further driving up its price.
* These combined factors have contributed to the notable increase in gold rates observed recently.
Potential Factors for Gold Price Decline: Trading Predictions
* Indian Stock Market at Lifetime High: USD and INR likely to exert downward pressure on gold due to increased investor confidence in equities.
Technical Analysis
* From the last seven days the moving Average of Gold id Rs. 69,950Over the past seven trading sessions, gold June futures closed at Rs.69,950.If the ate goes down, Near-term support rests at Rs.70,912 (yesterday's low), indicating a potential downside to Rs.69,950.(Seven Days DMA : 69,950)
* Gold could potentially rise to Rs.72,200, with a breakout leading to further gains up to Rs.73,500. This indicates a bullish trend in the market, possibly driven by factors such as increased investor demand or geopolitical tensions.
Impact of US CPI Data
* Conversely, the release of US Consumer Price Index (CPI) data today is expected to have a negative impact on gold prices. Any indication of higher-than-expected inflation in the US could strengthen the US dollar and diminish the appeal of gold as a safe-haven asset, potentially leading to a decline in its price.
* Gold Future June Contract: During the morning Asian trading session, the gold futures for June contract soared to Rs. 71,709 per 10 grams, marking a historic high.
* April Price Surge: Over the period from April 1st to April 10th, gold prices surged by a significant 5.6%. On April 1st, prices stood at Rs. 67,888 per 10 grams, escalating to Rs. 71,709 by April 10th.
* April 1st: Rs. 67,888 per 10 grams.
* April 10th: Rs. 71,709 per 10 grams.
Drivers Behind Rising Gold Rates
* Central Bank of China's continuous gold purchases for the past 17 months have bolstered demand and supported price increases.
* Speculation surrounding the American Federal Reserve's potential 0.25% interest rate decrease added upward pressure on gold prices, with the likelihood decreasing from 57% in March to 49% in April, as reported by the CME Group.
* Recent geopolitical events, including earthquakes in Taiwan and tensions between Iran and Israel, have increased market uncertainty, prompting investors to seek refuge in safe-haven assets like gold, further driving up its price.
* These combined factors have contributed to the notable increase in gold rates observed recently.
Potential Factors for Gold Price Decline: Trading Predictions
* Indian Stock Market at Lifetime High: USD and INR likely to exert downward pressure on gold due to increased investor confidence in equities.
Technical Analysis
* From the last seven days the moving Average of Gold id Rs. 69,950Over the past seven trading sessions, gold June futures closed at Rs.69,950.If the ate goes down, Near-term support rests at Rs.70,912 (yesterday's low), indicating a potential downside to Rs.69,950.(Seven Days DMA : 69,950)
* Gold could potentially rise to Rs.72,200, with a breakout leading to further gains up to Rs.73,500. This indicates a bullish trend in the market, possibly driven by factors such as increased investor demand or geopolitical tensions.
Impact of US CPI Data
* Conversely, the release of US Consumer Price Index (CPI) data today is expected to have a negative impact on gold prices. Any indication of higher-than-expected inflation in the US could strengthen the US dollar and diminish the appeal of gold as a safe-haven asset, potentially leading to a decline in its price.