Chennai: With the gold price surplus high, investors should wait for the next correction to buy yellow metals. Instead, they should consider accumulating their cheap cousin silver, as the gold ratio supports platinum.
Although several geopolitical and geoeconomic factors support gold prices in the medium term, the ongoing tariff war is responsible for a sharp rise.
“Any move by the United States and China to ease trade tensions can see corrections in gold prices,” said Ajay Kedia, MD, of Cadia Commodity.
In the international market, gold immediately resists $3,500 per ounce, followed by $3,640. The price for the support level is $3020. In MCX, the support level is Rs 93,000 per 10 grams and the resistance is Rs 1,03,000.
“At the current level, investors can consider using a small amount of gold profit. However, investors should wait for the purchase to be corrected,” he said.
Meanwhile, Silver provides investors with buying opportunities. On Tuesday, the MCX’s silver medal was priced at Rs 95,600 per kilogram. The ratio of gold rose to more than 100 times. Gold-Silk Ratio – The number of silver required to buy an ounce of gold – earlier rose to just 100 ounces during the pandemic.
Typically, the gold ratio remains around the level of 65-70, moving between 32 and 85. Once the ratio rises, the silver price will rise.
In addition, the use of silver as industrial metals in solar and electric vehicle equipment is increasing, thus supporting prices.
