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Gold Price Today Nears Rs 53,500 as Rupee Tumbles; Will Yellow Metal Price Hit Lifetime High?

Gold is promoted as a “safe haven” for individuals seeking protection against more conventionally volatile investments, such as stocks, in times of uncertainty.

Gold Price Today Nears Rs 53,500 as Rupee Tumbles; Will Yellow Metal Price Hit Lifetime High?
Photo by Michael Steinberg
Why do people consider gold to be a ‘safe haven’ in crises since Ancient Time?

Gold is prized around the world for its high value and long history, which spans thousands of years. Around 650 B.C., gold coins began to appear, and some 100 years later, King Croesus of Lydia issued the first pure gold coins.

People have kept gold in their possession for many reasons throughout the millennia. Gold’s worth has been perpetuated by societies and now economies placing value on it. It’s the metal we turn to when other kinds of cash fail, therefore it’s always worth something as a hedge against bad times. Here are eight compelling reasons why you should consider purchasing gold right now.

“If people grow more fearful, you generate money,” Berkshire Hathaway CEO Warren Buffett remarked, “but the gold itself doesn’t produce anything”. “As the coronavirus epidemic has turned a worldwide health disaster into an economic crisis, investor fear is at an all-time high.

Gold is promoted as a “safe haven” for individuals seeking protection against more conventionally volatile investments, such as stocks, in times of uncertainty.

“When compared to stocks, where even the largest blue-chip businesses can (and have) fail, an investment in gold frequently appears to be less hazardous,” said Adam Vettese, market analyst at Etro.

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Why this Sudden hit in the Gold Prices?
Gold Price Today Nears Rs 53,500 as Rupee Tumbles; Will Yellow Metal Price Hit Lifetime High?

The rupee has hit a lifetime low amid the Russia-Ukraine conflict, causing gold prices in India to skyrocket. The need for a safe haven grew as the economy became more unstable due to the protracted war and escalating sanctions against Russia. 

At 1145 hours on March 7, gold futures on the Multi Commodity Exchange increased by 1.70 percent to Rs 53,445 for 10 kilos. In India, in August 2020, the yellow metal reached an all-time high of Rs 56,200.

“International gold spot and COMEX futures hit $2000/ounce in Asian trade on Monday morning, as investors sought safe-haven assets amid fears about the Russia-Ukraine crisis.” Technically, if LBMA Gold trades over $2000, it may experience a bullish momentum that extends to the $2015-$2022 levels. $1982-$1970 is the level of support “Sriram Iyer, a senior research analyst at Reliance Securities, explained the situation.

“Domestic gold prices are expected to start higher on Monday morning, matching international prices.” Technically, a strong trend up to Rs 52,750-53,000 levels could be seen if MCX Gold April closes above 52500. The levels of support are Rs 52,350-52,200, “Iyer went on to say that.

“The intensification of Russia’s war is hurting commodities prices all across the world.” Gold prices have risen dramatically in response to new sanctions against Russia. Concerns about high commodity prices affecting inflation and slowing GDP fueled fears of stagflation. Near-term Buy Zone – Rs 52,300 with a target price of Rs 52,800. Sell zone below 52,000 for a goal of 51,800 rupees “According to Ravi Singh, Share India’s vice president and head of research.

“Due to bearish global market sentiments and falling US government yields, gold is anticipated to maintain its positive bias for the day.” “According to a statement by ICICI Direct Research.

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Written By

Yashi Saxena is a News Analyst and Author at Empire Weekly. She was born and brought up in Rampur Uttar Pradesh. She is a B.tech graduate and currently pursuing her MBA in finance. Writing her heart down through poems and stories gives her peace and clarity about her thoughts and she believes when she writes more she learns more. Someone who knows her would call her cheerful, emotional, and hard working.

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