Gold added to its gains once more on Thursday as crude oil gained to a record $144.44/bbl after the US inventory data revealed an unexpected decline. “Major trend for the gold remains bullish, we expect gold to touch $953/oz in the coming days,” said Director of Global Financial Market, Bharath Kumar.
On MCX, the August contract for gold opened at Rs13,168/10gms and went on to touch a high of Rs13,226/10gms. It was last traded (11:16 IST) at Rs13,209/10gms on Thursday.
“The support level for gold is seen at $933/oz-$932/oz while a resistance is seen coming in at $953/oz levels,” Kumar said.
“We recommend long-term investors to hold long-positions and buy on dips while the short-term investors can book partial profits when gold touches $953/oz and above,” Kumar added.
On Wednesday, the Mumbai spot gold closed at Rs13,000/10gms while the London PM was fixed at $935.25/oz.
“Gold is continuing to gain not only due to strong crude and weak dollar but it is also driven because of the inflation. Gold is considered to be the safe-haven in the times of uncertainty and hence the yellow metal is making the gains,” said Kumar.