 "Gold touches lowest in six weeks following global move")
Gold hit its lowest in six weeks as markets widely awaited confirmation of the US Federal Reserve’s stance on interest rates. A Fed official had hinted last week of more rate increases this year than estimated earlier. This renewed confidence is resulting in the dollar gaining against major global currencies.
Standard gold in Zaveri Bazaar declined to Rs 28,235 per 10 g, a level not seen since February 10. The metal, however, closed with a marginal recovery of Rs 40 to Rs 28,275 per 10 g on Tuesday amid thin trading due to a jewellers’ strike against the excise levy of 1 per cent. “Gold extended losses on Tuesday after its biggest weekly drop since early November as the dollar firmed ahead of a speech by Fed Chair Janet Yellen,” said Prathamesh Mallya, senior research analyst (non-agro commodities and currency), Angel Broking.
“In case Yellen confirms the hawkish stance on interest rates, we see gold coming under selling pressure to touch $1,185 an ounce,” said Gnanasekar Thiagarajan, director, Commtrendz Research.
Meanwhile, gold price in global markets slumped to $1,218 an oz on Tuesday, ahead of Yellen's speech. This means the euphoria about gold price surge has been dismissed at least temporarily.
Gold in global markets slumped to $1,218 an ounce on Tuesday. The metal has provided the first positive returns in four financial years with a 2.84 per cent rise in global prices so far this year. During the past three years, that is, 2013, 2014 and 2015, gold had offered negative returns (loss) of 3.96 per cent, 13.05 per cent and 8.35 per cent respectively.
"Gold extended losses on Tuesday after its biggest weekly drop since early November, as the dollar firmed ahead of a speech by Federal Reserve chair Janet Yellen, which will be watched for clues on U. monetary policy," said Prathamesh Mallya, Senior Research Analyst (non-agro commodities and currency), Angel Broking.
Meanwhile, strengthening dollar index and profit booking at higher levels are factors exerting downside pressure on the yellow metal. Also, members and non-members from the Organization of the Petroleum Exporting Countries (OPEC) are due to meet in the Qatari capital of Doha on April 17, to discuss a plan that will decide further trajectory of oil prices in the near term.
The benchmark WTI is trading lower today by 1.55 per cent at $38.78 per barrel in global markets. In India, however, the rupee strengthened by 2 per cent to trade currently at 66.50 against the dollar on huge inflow of funds resulting into strong equity markets.
Standard gold in Zaveri Bazaar declined to Rs 28,235 per 10 g, a level not seen since February 10. The metal, however, closed with a marginal recovery of Rs 40 to Rs 28,275 per 10 g on Tuesday amid thin trading due to a jewellers’ strike against the excise levy of 1 per cent. “Gold extended losses on Tuesday after its biggest weekly drop since early November as the dollar firmed ahead of a speech by Fed Chair Janet Yellen,” said Prathamesh Mallya, senior research analyst (non-agro commodities and currency), Angel Broking.
“In case Yellen confirms the hawkish stance on interest rates, we see gold coming under selling pressure to touch $1,185 an ounce,” said Gnanasekar Thiagarajan, director, Commtrendz Research.
Meanwhile, gold price in global markets slumped to $1,218 an oz on Tuesday, ahead of Yellen's speech. This means the euphoria about gold price surge has been dismissed at least temporarily.
Gold in global markets slumped to $1,218 an ounce on Tuesday. The metal has provided the first positive returns in four financial years with a 2.84 per cent rise in global prices so far this year. During the past three years, that is, 2013, 2014 and 2015, gold had offered negative returns (loss) of 3.96 per cent, 13.05 per cent and 8.35 per cent respectively.
"Gold extended losses on Tuesday after its biggest weekly drop since early November, as the dollar firmed ahead of a speech by Federal Reserve chair Janet Yellen, which will be watched for clues on U. monetary policy," said Prathamesh Mallya, Senior Research Analyst (non-agro commodities and currency), Angel Broking.
Meanwhile, strengthening dollar index and profit booking at higher levels are factors exerting downside pressure on the yellow metal. Also, members and non-members from the Organization of the Petroleum Exporting Countries (OPEC) are due to meet in the Qatari capital of Doha on April 17, to discuss a plan that will decide further trajectory of oil prices in the near term.
The benchmark WTI is trading lower today by 1.55 per cent at $38.78 per barrel in global markets. In India, however, the rupee strengthened by 2 per cent to trade currently at 66.50 against the dollar on huge inflow of funds resulting into strong equity markets.