 "Gold prices hit 33-month high")
Gold prices rose 0.84 per cent on Tuesday to hit the highest in 33 months on fresh buying from investors amid expectations of easy monetary policy by leading economies across the world. Standard gold in the popular Zaveri Bazaar here closed with a gain of Rs 260 at Rs 31,480 for 10 gms on Tuesday following global cues. This level of gold price was not seen after October 2013. Physical traders, however, abstained from fresh buying on expectations of a correction in prices following a long-due profit booking.
Gold has suddenly found safe-haven buying interest from investors and jewellers. Funds have started picking up stake in gold resulting in the yellow metal extending gains into the second day after expectations on interest rate hike by the US Federal Reserve this year diminished.
“A sharp increase in gold prices has kept physical buyers absent. Demand of physical metal has crashed. Bullion dealers, therefore, are prompted to sell their inventory with a discount, which hovers around $40-45 an oz. More than the physical demand, fluctuations in the global currencies, especially yen, is supporting gold’s upward movement,” said Prithviraj Kothari, managing director, RiddiSiddhi Bullions Ltd.
“Gold prices surged as dollar remained under pressure after weak US economic data tempered expectations of a near-term interest rate hike by the Federal Reserve. Besides, data showed the New York Federal Reserve’s index of manufacturing conditions unexpectedly contracted in August. We expect gold prices to trade higher as investors will be cautious ahead of the crucial Federal Open Market Committee meeting minutes due Wednesday,” said Prathamesh Mallya, senior research analyst (non-agro commodities & currency), Angel Commodities Broking.
Meanwhile, Hareesh V, head of commodity research at Geofin Comtrade, expects leading economies across the world to continue with easy monetary policy stance keeping the overall market sentiments sanguine. Global equities stayed in the vicinity of one-year high, while Asian equities hit one-year peak and commodities traded mixed prior as investors await key economic data releases from the US. Rising oil prices and weak dollar aided the sentiments as well.
Crude oil continued to rise, staying in the vicinity of the five-week high. Crude oil prices had started gaining momentum after reports that key oil producers are to meet next month with an aim to stabilise market after prices slid towards $39 a barrel earlier this month. Crude oil on the New York Mercantile Exchange touched $46 a barrel on Tuesday, while ICE Brent crude oil was at $48 a barrel.
Gold has suddenly found safe-haven buying interest from investors and jewellers. Funds have started picking up stake in gold resulting in the yellow metal extending gains into the second day after expectations on interest rate hike by the US Federal Reserve this year diminished.
“A sharp increase in gold prices has kept physical buyers absent. Demand of physical metal has crashed. Bullion dealers, therefore, are prompted to sell their inventory with a discount, which hovers around $40-45 an oz. More than the physical demand, fluctuations in the global currencies, especially yen, is supporting gold’s upward movement,” said Prithviraj Kothari, managing director, RiddiSiddhi Bullions Ltd.
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In London, gold price jumped $11 to trade $1,352 an oz in early afternoon trade. Silver was trading rangebound at $19.81 an oz on Tuesday.
“Gold prices surged as dollar remained under pressure after weak US economic data tempered expectations of a near-term interest rate hike by the Federal Reserve. Besides, data showed the New York Federal Reserve’s index of manufacturing conditions unexpectedly contracted in August. We expect gold prices to trade higher as investors will be cautious ahead of the crucial Federal Open Market Committee meeting minutes due Wednesday,” said Prathamesh Mallya, senior research analyst (non-agro commodities & currency), Angel Commodities Broking.
Meanwhile, Hareesh V, head of commodity research at Geofin Comtrade, expects leading economies across the world to continue with easy monetary policy stance keeping the overall market sentiments sanguine. Global equities stayed in the vicinity of one-year high, while Asian equities hit one-year peak and commodities traded mixed prior as investors await key economic data releases from the US. Rising oil prices and weak dollar aided the sentiments as well.
Crude oil continued to rise, staying in the vicinity of the five-week high. Crude oil prices had started gaining momentum after reports that key oil producers are to meet next month with an aim to stabilise market after prices slid towards $39 a barrel earlier this month. Crude oil on the New York Mercantile Exchange touched $46 a barrel on Tuesday, while ICE Brent crude oil was at $48 a barrel.