Investors need to remain neutral in gold, gold has again gained momentum

Gold was observed to strengthen on Wednesday as investors purchased gold after the prices had declined in the previous session, with the market anticipating US economic statistics as well as insights from the new policy session of the US Federal Reserve. Specialists claim that gold dropped during the previous session, following which the prices of gold once again increased. Futures of gold and silver began with an increase today, both futures opened sharply. The gold price was seen trading at Rs 95,300 per ten grams and the silver price at Rs 98,000 per kg in the domestic market.

Gold futures began with an increase. For the Multi Commodity Exchange (MCX), June gold futures opened at Rs 95,287 with an increase of Rs 144 on Wednesday. The previous close had been Rs 95,143. Subsequently, gold futures had been trading at Rs 95,300 with an increase of Rs 157. Silver futures began on a strong note, said the MCX. Silver futures for the MCX opened at Rs 97,749 with an increase of Rs 274. The former close had been Rs 97,475. It had been trading at Rs 95,300 with an increase of Rs 157.

Angel One Non-Agri Commodity and Currency Expert Prathamesh Malya Commodity experts say that gold has risen due to recent purchases by investors. If the tension between the US-EU reduces, then the prices of gold and silver will not come down immediately due to this. Jigar Trivedi, Senior Commodity Analyst at Reliance Securities, said that gold prices have rebounded after a sharp decline in the previous session. The market is in a wait-and-watch position before the minutes of Fed's action are released.

In Motilal Oswal's report, gold touched a record level in April, but now with the global uncertainty reducing a bit, its prices may improve somewhat. In such a situation, investors are advised to adopt a neutral view. At present, do not rush to buy gold nor make up your mind to sell it. Investors need to follow the policy of wait and watch. Experts say that gold has returned to its uptrend, but volatility may continue. Although gold prices have come down due to easing of tensions between the US and the European Union, despite this, if gold gets support of $ 3,250-3,280 an ounce, then gold is expected to rise.