Gold Silver Reports (GSR) – Gold prices are likely to hold in the range of ₹ 32,500—33,500 per ten grams until Diwali Target in the domestic market, and internationally the Gold might be in USD $1,180—$1,410 an ounce level.
Weak Rupee (₹): “Price would have absorbed the effect of rate hikes and rate hikes would only confirm inflationary expectations, which could increase the appeal for bullion as a inflationary hedge then. And with domestic currency poised to weaken further prices could test previous highs around Diwali.
Read More: Silver Forecast By German-Based Research Firm
In India, gold on June 8 closed at ₹ 31,010 per 10 grams and while in New York it closed at $1,302.70 an ounce. Globally, gold spot prices have been in a range being capped by rising yields and dollar, and supported by global uncertainties and geo-political tensions, but it is holding well in spite of a strengthening dollar.
Rate Hike: “There is a lot of optimism in the US economy and I feel there is a possibility of rate hike. This will cap the volatility in gold. So during Diwali the gold price is likely to be around ₹ 33,500 in the upper range and around ₹ 32,500,” In US dollar term, gold is likely to be in the range of $1,410 in the upper level and $1,180 in the lower level.
Markets Correction: “Even though the equity market has boomed gold prices have held very well. This is an indication that investors are concerned of a stock market correction anytime which would be a good news for gold prices,”.
When it comes to gold demand in the domestic market, Thiagarajan said, investment demand has been virtually absent as stock markets have been delivering good returns and conventional jewellery demand has also not seen any rise due to high prices capping demand and the buying trends also changing slowly.
The bear phase in gold, which started in 2011 took a pause as it rebounded in 2016 followed by a consolidation in 2017, she said adding currently gold prices seems to be well balanced as it is consolidating between $1,290 and $1,350. – Neal Bhai Reports
