Akshaya Tritiya: Religare Broking lists 6 key reasons to buy gold in 2024
₹68,500 per 10gms, targeting an initial upside of ₹74,000 per 10gms, followed by ₹78,000 per 10gms levels. Conversely, a decisive break below the previous swing low of ₹65,200 per 10gms could disrupt the trend, potentially leading gold to retest the ₹63,300-Rs.63,800 per 10gms range, it predicted. Following a robust performance last year, gold has been persistently climbing upward, registering an approximate 12.50 percent gain on domestic exchanges thus far.
On the daily chart, Religare noted that prices are currently consolidating after a sharp rise, with ₹70,000 per 10 gms ($2280) acting as a pivotal level. Although buyers are hesitant to enter during this consolidation phase, a slight dip towards the 50 SMA at ₹68,500 per 10gms ($2235-$2240) could present a favorable buying opportunity for the next leg of upward momentum, it said. Meanwhile, on the weekly chart, prices have extended away from the 20 SMA and 50 SMA, prompting bulls to anticipate a pullback.
A temporary pause in prices indicates a positive signal, especially since there's a bullish flagpole pattern in play, which may extend further before prices resume their upward trajectory, added the brokerage. As per the brokerage, the future of gold remains dynamic, shaped by various global factors such as central bank policies, geopolitical scenarios, and economic indicators. While the gains seen in the current year are commendable, the historical trend of higher returns during turbulent periods highlights gold's potential to flourish amidst heightened uncertainty.
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