Gold price climbs lifetime peak on Coronavirus fears; experts still bullish

Gold price today climbed its lifetime high of as much as Rs 43,912 per 10 gms on Coronavirus pandemic spread over 75 countries. The commodity market experts have said that the precious yellow metal will further go upward as the COMEX gold is poised to hit $1,800 per ounce. They are of the opinion that the COVID-19 virus is expected to have its impact on the global markets for at least the next three months and in this period the gold price will climb up to $1,800 per ounce. In their opinion, MCX gold price is expected to touch Rs 47,000 per 10 gms in the coming three months.

Expecting further rally in gold price due to the Coronavirus fears, Amit Sajeja, Research Analyst at Motilal Oswal said, "Coronavirus impact on the global economy is definitely going to stay for the next three months and if some more new cases of COVID-19 is detected in the US, there can be some sharp rally at the COMEX gold fuelling it to around $1,800 per ounce." 

However, Sajeja said that a very highly volatile session in gold price is expected saying, "At MCX, the gold price is expected to hit Rs 44,500 first and once it stays above this level, we can expect it to rally up to Rs 47,000 per 10 gms in the next three months."

On gold price prediction for next fortnight Anuj Gupta, Deputy Vice President — Commodities and Currency trade at Angel Broking said, "Gold price is rising due to the Coronavirus spread over 75 countries. The COVID-19 virus spread has hit the global economy to a larger extent and the US Fed was forced to cut interest rates by half per cent. This Fed rate cut also fuelled gold price yesterday leading to Rs 1,800 per 10 gm gold price rise in the last two days." Gupta said that in the next fortnight Gold price at COMEX is expected to hit $1,680 per ounce to $1,700 per ounce as Coronavirus is expected to continue for at least this period.

Standing in sync with Amit Sajeja of Motilal Oswal, Anuj Gupta of Angel Broking said, "In next fortnight, MCX gold price is expected to hit Rs 44,500 to Rs 45,000 as Coronavirus impact is expected to continue for next fortnight for sure."

Expecting high volatility in the gold price at both COMEX and MCX, Sugandha Sachdeva, Vice President at Religare Commodities said, "Gold price has immediate support at $1,620 per ounce, while major support is seen at $1,590. On the higher side, gold prices have a visible hurdle at $1,660 per ounce level. Once it breaks past this resistance and sustains above this level, we can expect the gold price at COMEX to test higher levels of $1,730 per ounce."

In MCX terms, Sachdeva said that gold price is expected to witness some intermittent profit booking as it has rallied close to its all-time high of Rs 43,788 per 10 gm levels, saying, "Gold MCX has strong support at Rs 42,000 per 10 gm, which should hold due to the Coronavirus crisis hitting the global economy to a larger extent."

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She went on to add that after the Fed rate cut decision many central banks like the ECB are expected to follow suit and cut interest rates. This environment of low-interest rates is likely to support gold prices. So, the overall outlook for gold price is positive and one can buy gold on some declines for the target of Rs 44,500-44700 per 10 gms at MCX.