Gold
RBI fixes price for premature redemption of Sovereign Gold Bonds
The price is based on the simple average of closing gold price of 999 purity of previous three business days from the date of redemption as published by the India Bullion and Jewellers Association Ltd (IBJA).
Hawkish stance of US Fed likely to keep gold prices muted
Gold is currently trading at $1,960, and has been fluctuating in the range of $1,880-$1,960 during the last one month
Gold prices near two-week highs
The US 10 year Yield after dropping by more than 2 per cent in the earlier session is inching higher once again, Dollar index also continues inch higher hovering around 10 week-high above 104 mark, he said.
Geopolitical uncertainty offers support to gold prices
Hopes of a demand recovery from India may also contribute to the trend. However, it is unlikely for major rallies due to uncertainties over US rate hikes and the performance of US assets, he said.
Gold prices expected to remain steady amid weakness in rupee, onset of festive season
However, the trajectory could swiftly change. The moment the US Federal Reserve hints at a potential pause in its rate hikes or even the possibility of an interest rate cut, gold prices are likely to surge, the analyst said.
Gold gained on Fitch downgrade US credit rating
Be that as it may, a policy rate cut by the US Federal Reserve combined with higher-than-average inflation will result in a structural up move in gold prices, said Quantum Asset Management Company (AMC).
Dollar, gold can strengthen as investors shift assets towards safe havens
Fitch Rating downgraded its US debt rating to AA+ from AAA. The Rating downgrade reflects the expected fiscal deterioration over the next three years, a high and growing government debt burden, and erosion of governance. Treasury Secretary Janet Yellen quickly responded to the downgrade, calling it “arbitrary” and “outdated.”
Dollar gain takes shine off gold
"The recent decline in gold prices (5.4 per cent from an all-time high) can be attributed to a slight reduction in global recession concerns and the strengthening of the US dollar. Additionally, with the possibility of an interest rate hike in the US, this trend may persist," Anil R, a Research Analyst, said.
'Gold prices may dip for correction in short term'
According to Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities, prices of gold slightly recovered on Friday, with the spot gold price at Comex trading up by 0.17 per cent at $1,917 per ounce. The gold August future contract at MCX was trading up by 0.10 per cent at Rs 58,255 per 10 grams by noon.
Gold price rallying on hopes of a pause by US Fed
The latest data set has led to a belief that the US Fed will take a pause and hold interest rates at current levels. The treasury yields too have softened from the high levels seen in the month of March. While the Fed Chairman indirectly hinted at the possibility of a pause, the other Fed officials, quite a number of them, sounded like there is enough room for the Fed funds rate to rise even beyond the 6 per cent level, from the current range of 5 per cent -5.25 per cent.
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