Gold prices likely to scale higher towards Rs 65,000/10gm: Religare
Gold has become more precious than ever with its stellar performance and clocked almost 44 per cent returns at its peak this year. Amid the economic distress caused by the Covid-19 pandemic, gold has lived up to the expectations while delivering great returns along with safeguarding investors' portfolios, according to a report by Religare Broking.
Not only the Covid-19 crisis, assemblage of several other factors such as the macroeconomic issues, political uncertainties, and investment demand steered the metal northwards.
As of now gold prices are trading almost 10 percent down from their life time highs. The question that comes to everybody's mind is-whether the marathon run is over for gold or it's just a halt before the next leg of move all over again.
Gold has undoubtedly been the most preferred asset this year which not only charmed investors with towering returns but also bailed them out in the time of dark clouds.
In domestic market, precious metal is holding strong with nearly 30 per cent returns so far, even after a significant correction from its peak of around Rs 56,191/10gms at MCX, marked in early August., the report said.
Looking at the chart structure, bullish tone remains intact on higher time frames where monthly and weekly charts are witnessing advance with higher highs and higher lows.
Metal has witnessed decent correction from life time highs and consolidated near 100 Day EMA, while finding strong support close to Rs 49,200/10gms mark.
Even though prices may remain volatile after the sharp rise, but look to remain supported from a medium term perspective by the support zone of Rs 47,700-47,200/10gm ($1760/oz) in case of any adverse move on the downside. As long as this key support area holds, prices will remain underpinned, the report said. From a yearly perspective, prices are even expected to scale higher towards Rs 65,000/10gm mark, Religare Broking said.
