This title brings some happy expression on the existing holders & Some annoying expression on people,who is planning to buy in future!
I assure you that at end of reading this blog,Everyone get a clarity about long term view of Gold.
People who all planning to accumulate a gold in upcoming period will have a chance for a Best entry.!
In this blog,We are going to discuss about 3 Segments about gold.
- Why the Price will go up ?
- How we predict it will go up ?
- When will it Happen ?
Why the Price will go up ?
Usually in Asian Countries, Gold is consider as a major type of investment.Because its only asset we can carry everywhere and sold easily at any type of crisis.
Till Nov 2003,Gold prices are determined by Convinients of Shop owners of India.
At Nov 2003,Gold is added as a commodity in Mcx Market for speculation.
Expert Says this was a major reason for the Surge in Gold price in india.!
Because online speculators traded with comparison data of Forex Gold price.!
As per an article in Economic Times,Indian Consumes 800 to 850 tonnes of gold annually.
Due to a sentimental factor of gold as investment,demand of gold is increased based on online market price.
2008 Recession made an oppurtunity for more speculators in mcx market.Once gold was considered as an investment in commodity market,it was compared with the alternative investment path from Equity market.
From their, Speculation is vice versa in both Equity and Commodity Gold Market.
Whenever Stock price gets surge,Mcx Gold price will come down.
Same happens when Mcx Gold price surge , Equity stocks price will fall down.
The Investors entry was depend upon the Trends of these markets.
Being in Covid Pandemic sistuation, investors action is higher in gold market compare to equity market.
How we predict that it will go up?
As we mentioned above,Online Speculators (Traders) trade with the comparison of Forex Gold Price.
Usually, Traders use Technical analysis method for the Entry & Exit for Trading in Commodity Market.
As per technical view in mcx market, Gold is in Uptrend (BULLISH) , It was in all time high, So, we can't able to find a resistance in historical data.
In this sistuation,Traders choose Forex Gold chart for analying.
As per Gold Spot chart, Market is in Up trend.We find a overall High Resistance in (1910 $ to 1920 $).
If the market break that resistance,It will surge up.
As Per Fibonnaci Extension Tool, We can find next strong resistance in the range of (3000 $ to 3050 $).
Being the values are in dollars,its quit difficult to compare the physical gold price.
Once the spot reach $3000,it values around (Rs.2,25,000) in INR.
As per forex gold contract, its measured in (1 Troy Ounce) Unit Syetem.
1 Troy Ounce = 31.10 Grams.
So, 31.10 grams of Gold will be (Rs.2,25,000).
1 gram of gold is priced at (Rs.7,250).
Being its a Physical 22 Carat gold it may vary from (250+ or 250-) in Price.
When will it Happen ?
In Technical Analysis view, once it broke its All time higher resistance of $1920, it surge up.
In conversion term, If the Price cross (Rs:4950 to Rs.5000) of 22 carat. There is a more oppurtunity to Surge up to (Rs.7000 to Rs.7500).
Important Factors should Consider before the entry.
- $ 1920 level was a strong resistance of Forex Gold Spot market,Which was previously formed in Sep of 2011.
- If the market broke that resistance, then only it will surge up.!
- If the market didn't broke that level,it forms a double top in the swing.
- If the market forms double top,there was a chance for a huge sell opportunities,we can expect a fall till $ 680 means in conversion Rs.2000 in indian rate.
So, As i mentioned at starting of this blog, The best entry i mentioned was this factor. If Market didn't broke at 5000,surely price of the gold will fall down. Accumulate at lower price, Once a Trend change it will hit our prediction range.
- If the market forms double top,there was a chance for a huge sell opportunities,we can expect a fall till $ 680 means in conversion Rs.2000 in indian rate.
Conclusion:
we conclude with our view that Gold will surely hit Rs.7000 per 22 carat before the end of 2025.
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