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Best time to buy gold, say experts
Posted on: 18/Apr/2018 11:49:28 AM
According to indicators, the ongoing rally in gold is likely to continue in the near term. Weekly gold price charts show a bullish Ascending Triangle formation. Momentum indicator Moving Average Convergence Divergence or MACD has reflected a positive crossover with a fresh buy signal even as it traded above the signal line, which is a bullish signal.
Speaking about this, industry experts say, Gold is inversely related to the US dollar. The USD is likely to weaken a bit and this can further aid the likely spike in gold price. If international price of gold moves past $1,370, it will result in a breakout from the Ascending Triangle formation. There are high probabilities of the breakout occurring over the coming weeks.
On the domestic front, gold prices are in a medium-term uptrend for last four months. They have jumped nearly 9 per cent to Rs 31,058 per 10 gm as of April 17 from Rs 28,421 on December 13 last year.
Say the experts, Best buying opportunity in yellow metal would only on a sustainable breakout above Rs 31,562 level. As this metal is moving in an Ascending Channel for last 16 months, such a breakout shall throw up a lucrative target of around Rs 34,500 over time. A more realistic target for the near term would be Rs 32,455. Till such a breakout occurs, this metal is likely to move in the Rs 31,562-30,900 range, whereas short-term selling pressure can be expected on a close below Rs 30,850 level.
