Thursday, 16 June 2016

Mcx Golden Stock Tips ; Gold tops Rs 31,000 for first time in 2 years, three factors driving this surge

Prices of the yellow metal on Thursday hit Rs 31,000 on the Multi Commodity Exchange (MCX) for the first time since May 2014, taking cues from a surge in gold prices in global markets. The prices have risen in eight out of the past 10 sessions. We have been providing valuable Tips to our clients through various methods. For more details just visit on www.marketmagnify.com or Give One Missed call us at 78-79-88-11-22 

Gold prices have risen 10 per cent since May 2014 and 24 per cent since the beginning of the year, ending its five-year-long bear market. The yellow metal is the best performing major asset class in 2016, leaving equities far behind. 
Going by what analysts are saying, here are the three factors driving the current rally in the yellow metal. 

1) Brexit fear drives risk off rally: The risk off trade in global risk assets is sending investors flying to the safe haven of precious metals. Gold prices have risen 3 per cent in June and iShares Gold ETF has gone on a similar rally gaining close to 5%. Experts believe if the UK votes against staying with the EU, international gold prices could run up as high as $1,400. 

2) Fed, BoJ status quo energises gold bulls: The decision by two major central banks of the world to hold key policy rates steady has energised the gold bulls. The US Federal Reserve's outlook for reduced interest rate hike in 2017 and 2018 has added further stimulus to the frenzied gold buying as investors looked to hedge against the negative interest action by Bank of Japan and the European Central bank. 

3) Dollar bears help gold bulls: The inverse relationship between dollar and gold is playing out in favour of the Gold bulls. Comments from the US federal Reserve have sent the dollar tumbling against major currencies and that has aided the rally in the precious metal as international prices hit their highest level since August 2014. The dollar index, a gauge of US dollar against six major developed currencies, slipped 0.38 per cent in Thursday's trade while gold prices rallied 2.05 per cent at home.

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