what would be next level of Gold ?

What analyst says on Investment in Gold 

Posted by: Shivam kumar

Mumbai: Gold prices have been given strong returns since 2019. Prices were at 31000rs per 10grms which have now touched 60000rs giving nearly 100% returns in the last 4yrs, which accounts to compounding of 25% which is far beyond par levels of 15% in major asset classes. 

It has also been surpassing major volatile events like trade war since 2019, covid19, Russia Ukraine war, such geopolitical tensions have given a lot more infusion into Gold prices rising higher.

 Currently we are in financial banking crises after SVB Credit Suisse alike which will continue to support Gold strongly this year in 2023. Investors should definitely keep strong allocation to Gold.

Any hike in line with 25 basis point or lower along with non visible or hawkish speech will be strongly positive for Gold and levels of 2040-2050 in Comex and 61500 odd will be seen in coming days.

On the flip side any higher hike than 25 basis with hawkish speech shall bring Comex Gold back to 1940 odd levels and 57000 in MCX which shall again act as buying bets.

The Broad trend is positive, but with eyes on the FED's speech after the banking collapse it looks very unlikely that the Fed would have much space left to keep increasing rates.

(Jateen Trivedi, VP Research analyst at LKP Securities.)