Another factor supporting the gold movement is the aggressive buying of haven assets by central banks across countries. As per the latest World Gold Council report (March 2023), global central banks and other institutions have purchased more than 1,000 tonnes of gold in the last three quarters (June 2022-March 2023 period). Breakout from consolidationTechnically, gold futures on MCX have the potential to scale higher towards ₹63,650 in the short term, while in the medium to long term, prices can go as high as ₹75,500. In January 2023, gold registered a breakout from a long consolidation (₹55,550) which continued for about two-and-half years, denoting a bullish signal for the medium-term trend. While on the higher side, applying the Fibonacci retracement technique, we sense MCX Gold to scale higher towards ₹63,650 in near term, and in the medium to long term, prices have a potential to test ₹75,500.

Source: The Hindu June 04, 2023 12:39 UTC