It is expected that gold prices in the domestic and spot markets to be range bound as equities go up such as the market weighs and concerns over global economic growth.
Gold and silver prices in the international market remains under pressure. China market close and India gold imported strictly at physical demand is likely to decrease. So, Comex gold prices are softening. However SPDR gold holding nearly 4 tons has increased.
Reuters updated, Gold slipped for a second session on Wednesday as a modest rebound in equities dented the metal’s safe-haven appeal, while weak physical trade in top buyer Asia also dragged on prices.
The consensus is that gold is unlikely to top at that level soon. The rise in equities has fallen overnight haven status of the yellow metal to some extent.
Market analysts, however, expect to gain gold in the short term as concerns persist over global economic growth and capital flight from emerging markets following the decision of the U.S. Fed reduce their encouragement.
However, MCX gold, with around 0.5 per cent gains is trading at Rs 29800. Silver with a gain of 0.5 per cent is above Rs 43800.
Spot gold slipped nearly 0.1 per cent to $1,253.61 an ounce by 0024 GMT, after dropping 0.2 per cent on Tuesday.
Reported News Source : The Business Line