INSUBCONTINENT EXCLUSIVE:
US-China trade worries continue to underpin global gold prices.
Wondering where gold prices are headed to In the past many weeks, gold prices have been stuck in a narrow range
Domestic gold prices have also displayed a similar trend
Gold prices in Delhi have been around Rs 32,000 per 10 grams (24 carat) during this period
Are gold prices expected to break the current trend anytime soon TheIndianSubcontinent here brings to you what experts think about the
current trend in gold prices
The Reserve Bank of India (RBI) has hiked the repo rate - the key interest rate - for the first time in more than four and a half years
The Federal Reserve, the American central bank, changed its tone to hawkish - announcing a much-awaited rate hike and two additional rate
hikes this year than anticipated earlier.3
first rate hike would come later than markets had expected as inflation is rising only slowly and economic growth is softening."Though the
recent rate hike led to some decline in (gold) prices, the prices have recovered fairly soon as there was a lot of accumulation seen in the
precious metal in the last few days, and as the dust has settled, prices are taking their own course and trying to reclaim higher levels,
akin to all recent rate hikes," Sugandha Sachdeva, vice president-metals, energy and currency research at Religare Broking, told
immediate short term, with a strong base in sight at $1,280 per ounce mark at COMEX
"Once the crucial hurdle of $1,325 an ounce is taken out, it will open up room for further move towards $1,365 an ounce mark," she said.4
Meanwhile, US-China trade worries continue to underpin global gold prices."North Korea's commitment to denuclearize and a soft approach from
the US is the latest trigger the ongoing tussle between US and China over import duty and any unseen or sudden news that has the potential
to raise geopolitical tensions may help gold prices spike
But one thing is almost sure that we are not going to see a huge rally from here anytime soon," said Gaurav Katariya, Research Head-
Oil investors have been nervous ahead of the key OPEC summit in Vienna in the coming week
No increase in supply by the OPEC is likely to keep crude oil prices high and affect the rupee against the US dollar, say analysts
"Ahead of the OPEC meeting next week, the rupee is expected to be under pressure With all indicators of dollar strengthening, rupee could
see 68.15 levels but on intervention strengthen to 67.40/50
In case OPEC does not agree to increase supply, the rupee can see a further fall," said Salil Datar, CEO and executive director, Essel
amid adequate monsoon rainfall which will support the prices, said Ms Sachdeva of Religare Broking.Monsoon rains, vital for Asia's economy,
hit Kerala at the end of May, a few days earlier than normal, brightening the outlook for agricultural and economic output.Weather office
IMD or India Meteorological Department has retained its monsoon forecast at 97 per cent of a long-term average
IMD defines average, or normal, rainfall as between 96 per cent and 104 per cent of a 50-year average of 89 cm for the entire four-month
However, Radiant Solutions, a private US-based weather forecaster, expects monsoon to make slow progress over the next two weeks and delay
farm output and boosting spending on items ranging from gold to tractors and refrigerators.Gold price: How far is Rs 33,000 per 10 grams"In
line with prices at domestic bourses, 24 carat gold price in Delhi may see a surge towards Rs 33,000 per 10 grams in near term, considering
In tandem, 22 carat gold is expected to rise close to Rs 30,900 per 10 grams," Ms Sachdeva said
bullish rally to take prices above Rs 33,000 will only emerge post first quarter of 2019."
