Gold has been on-demand ever since the pandemic hit the planet last year. After touching a high of ₹ 56,200 last year the yellow metal has been on a downward trend ever since.
It has been trading within a narrow parallel channel for the last nine months. However, last week the metal broke through a critical barrier towards the upside and seems to be consolidating outside the channel. With inflation fears resurfacing, commodity prices, in general, have seen an upward spike in the last few months. The gold chart shows that the yellow metal may soon be joining the other commodities in this melt-up.
Love for gold among the Indians is no secret. Buying gold on Akshaya Tritiya is considered auspicious. However, gold has been never been viewed as a product that can give a good return on investment. But now slowly, many hedge fund investors are starting to see the yellow metal as a good investment opportunity.
The Federal Reserve has been pumping liquidity like crazy since the stock market crash last year. This liquidity is very bullish for gold as equity markets look more and more vulnerable due to the ‘transitory inflation‘ that is being witnessed all over the world.
With technical charts now too supporting a bullish gold, traders are advised to add the metal to their portfolio. Gold could be touching all-time highs in the next two three months.