Gold prices on Tuesday fell by 0.17 per cent to Rs 48,145/ 10 gram while silver prices have dropped by 1.11 per cent to Rs 49,238 per kg.
As the number of COVID-19 cases increases in countries like the United States of America and India, deteriorating the hopes of the investors. Under this situation, investors have been leaning towards the safe-haven of the yellow metal.
Gold Price fluctuation: An overview
Gold prices are fluctuating since the start of this week, on Monday it reached the level of $1800 but it looks like we still have the same resistance in that region.
Prices went back and forth during Monday’s trading session. However, we can observe an upward trend. The $1800 level above should continue to be massive resistance, igniting the market takes off to the upside, perhaps reaching towards the $2000 level over the longer term.
The gold market is likely to continue to find plenty of buyers as the $1700 level offer support to the buyers, so the investors might get attracted to this offer.
However, we must remember that gold prices have a relationship with volatility unlike other asset classes, that have more significant economic uses. While other asset classes like bonds and stocks don’t go with increased volatility but gold tends to benefit amid periods of higher volatility.
According to the Gold Retail trader data, 66.57 per cent of investors are net-long with the ratio of investors long to short at 1.99 to 1. The total number of net-long is 4.29 per cent lower than yesterday and 1.45 per cent lower from the previous week, while the number of investors net-short is 1.98 per cent lower than yesterday and 6.12 per cent lower from the previous week.