Gold price failed to see a boost despite inflation

Now, besides the near term dollar, treasury yield and Omicron worries, there have been no major triggers for the gold price and hence it has been moving in a range. In the international markets, gold price fall has also to do with dollar gains which climbed up by close to 7 percent in the year i.e. to end today. The gains on the dollar came owing to rebound in indexes indicating the larger macros such as the US consumer confidence, retail / auto sales, industrial / manufacturing production.

The inflationary pressure being felt in the US and world over failed to provide the yellow glittering metal the much needed lift.

Gold price outlook for 2022 and beyond

Concerns which will be providing a lift or be a dampener can be summarised as below:

Omicron worries: Omicron worries though are now immense currently, any negative impact of the same can be a saviour for gold as is the case during the peak of coronavirus in 2021 which saw its prices to boom.

Interest rate hike: The withdrawal of the coronavirus led stimulus shall be completed by March 2022 and at the same time there are hints that interest rate shall also be hiked, in fact at least three times in the next year. This rate hike shall also be detrimental for gold as interest bearing securities than gain an edge over gold.

Dollar gaining strength: On faster rate hike and amid central bank actions, any strength and infact further strength in the greenback will not be overwhelming for gold price and hence only limited upside is seen for now.

Price prediction, support for gold on the MCX, Comex

“Comex Gold $1,700 / 10 gram is a strong support. $ 1,920 / 10 gram is a resistance. MCX Gold may find some support near Rs 46,000 / 10 gram and we may see a limited upside upto Rs. 51,000 / 10 gram”, says Jigar Trivedi is Manager – Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers in a leading dailies report.

GoodReturns.inGold price outlook for 2022 and beyond

Concerns which will be providing a lift or be a dampener can be summarised as below:

Omicron worries: Omicron worries though are now immense currently, any negative impact of the same can be a saviour for gold as is the case during the peak of coronavirus in 2021 which saw its prices to boom.

Interest rate hike: The withdrawal of the coronavirus led stimulus shall be completed by March 2022 and at the same time there are hints that interest rate shall also be hiked, in fact at least three times in the next year. This rate hike shall also be detrimental for gold as interest bearing securities than gain an edge over gold.

Dollar gaining strength: On faster rate hike and amid central bank actions, any strength and infact further strength in the greenback will not be overwhelming for gold price and hence only limited upside is seen for now.

Price prediction, support for gold on the MCX, Comex

“Comex Gold $1,700 / 10 gram is a strong support. $ 1,920 / 10 gram is a resistance. MCX Gold may find some support near Rs 46,000 / 10 gram and we may see a limited upside upto Rs. 51,000 / 10 gram”, says Jigar Trivedi is Manager – Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers in a leading dailies report.