Gold Price attitude!
Gold price: profit booking or a global slowdown sign!
Gold prices in India rose sharply on October 3, amid a rebound in the rates of the yellow metal in global markets. On MCX, gold futures prices rose as much as 1.3% or about ?500 to ?38,386 per 10 gram. Benchmark gold futures in Mumbai have jumped 22% this year and touched a record of 39,885 rupees per 10 grams in early September.
Mr Sunilkumar Katke, Head-Commodities & Currency at Axis Securities Ltd share his view on improved gold rates in a very short span of time. He said, "Gold at MCX improved by about Rs.1200 per 10 grams in a very short span of time on account of safe-haven demand from investors on concerns over extending US-China trade conflicts, wobbly global stock markets, worries over a global slowdown, slowing manufacturing activity in the US and concerns in the Middle East also supported the yellow metal prices.
However, the rise in gold prices may get capped by investors looking for profit booking amid strong technical resistance at 38450 levels, so a Sell can be initiated around current levels of 38300 with an SL of 38450 Targeting 37800."