All indicators pointing north; gold to shine bright this Akshaya Tritiya

Gold prices have been showing uptrend due to weakness in global equity market and geopolitical tensions in the Middle East. Saturday, the US, the UK and France conducted missile strikes over Syria. Geopolitical tensions, trade war between the US and China as well as rising crude oil prices are supporting gold.

The metal settled at $1,347.80 per troy ounce on Friday in the international market, marking second straight weekly rise in a row. In intraday trade, gold had touched $1,365 levels. On the domestic front, the yellow metal settled at Rs 31,118 per 10 gramme last week.

Last week, minutes from Federal Reserve’s last policy meet hinted at a possibility of aggressive interest rate hikes in 2018, which further boosted gold prices.

The metal is sustaining above $1,333 levels in the international market, and supportive fundamentals are signalling fresh round of rally.

On Wednesday (April 18), India will celebrate Akshaya Tritiya, which is considered as an auspicious day to buy gold.

Investors, who have continued to buy gold on Akshaya Tritiya over the last 20 years, gained returns of almost 10 per cent year-on-year. We expect gold to deliver positive returns this year as well.

Technical view

Gold is trading above $1,344 level in the international market, which is near to its next resistance at $1,353. Looking at the technical charts, gold can breach its resistance level of $1,353-1,365 in days to come.

Gold is forming higher top higher bottom on the charts, and is giving signal of further upside. If gold is able to sustain above $1,344 in the next two-three trading sessions, then it can test $1,353-$1,385 levels.

Courtesy: Economic Times / Image: Zee Business