Investors can look at selling gold on every bounce towards 49,000. Overnight, the US Fed’s downbeat growth outlook and ECB’s willingness to cut rates pushed the dollar higher, putting pressure on gold, experts say.
Gold prices flat at Rs 48,986/10 gm, India jewellery demand falls 42% in 2020
Gold holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund decreased by 3.2 tonnes to 1,169.16 tonnes on weaker investor interest.
Source: Reuters
Gold prices were steady at Rs 48,986 per 10 gram in the Mumbai retail market on rupee depreciation and negative global cues. The yellow metal traded weaker weighed down by a stronger dollar and broader sell-off across assets class amid global risk aversion.
The rate of 10 gram 22-carat gold in Mumbai was Rs 44,871 plus 3 percent GST, while 24-carat 10 gram was Rs 48,986 plus GST. The 18-carat gold quoted at Rs 36,740 plus GST in the retail market.
Gold prices edged lower on Thursday as investors opted for the safety of the dollar after the US Federal Reserve flagged concerns about the pace of recovery in the world s largest economy.
Experts are of the view that the precious metal which has slipped below 49000 could get some support around Rs 48,800. Investors can use the dip for a target of Rs 49,300 levels.