Indian Gold Prices Could Fall Below Rs 30,000 Mark

[CHANAKYA]

Gold prices have been on a declining spree for the third straight week. The prices in dollar terms have slipped as gold faced stiff resistance to cross above $1,800 an ounce.

Gold has seen a sell off on strength in the US dollar, strong data from the US and also on less chances of a stimulus from China. Apart from that, the sell off in other commodities like crude at near 3-month lows is also bothering the precious metal.

The US Federal Reserve meeting has had a few surprises as they held to the previous commitment on holding interest rates at zero till mid 2015 and maintaining $40 billion in monthly buying of mortgage backed securities.

The markets across the board are also eyeing the US presidential elections and are refraining from taking long positions ahead of that.

So, while the global gold prices have slipped to 1-month lows, the Indian gold prices have also declined to 1-week lows.

In the Indian markets though, we are in the middle of the festivities and buyers are looking at various avenues to buy gold. The rupee moves are favorable to lower calculation in rupee terms.

[b]After having seen an all-time high level of Rs 32,400 per 10 gram in the previous month, investors find the current prices relatively lucrative. So there is a strong demand from jewelers and retailers alike on purchases, as prices dipped below Rs 31,000. [/b]

[b]The industry estimate is that with the rupee consolidating at current levels and the global gold prices declining, the Indian gold prices could be headed lower and may go below the Rs 30000 mark per 10 gram. However, levels below that would be favorable for the medium to long-term investors. [/b]

[b]While the current year may have seen its highs in gold and silver, miners and banks feel that gold may well be going in for its 13th year of gains in 2013 on lower interest rates, high inflation and global growth uncertainty.[/b]

[andhrausa]

[quote name='CHANAKYA' timestamp='1351172047' post='1302687655']
Gold prices have been on a declining spree for the third straight week. The prices in dollar terms have slipped as gold faced stiff resistance to cross above $1,800 an ounce.

Gold has seen a sell off on strength in the US dollar, strong data from the US and also on less chances of a stimulus from China. Apart from that, the sell off in other commodities like crude at near 3-month lows is also bothering the precious metal.

The US Federal Reserve meeting has had a few surprises as they held to the previous commitment on holding interest rates at zero till mid 2015 and maintaining $40 billion in monthly buying of mortgage backed securities.

The markets across the board are also eyeing the US presidential elections and are refraining from taking long positions ahead of that.

So, while the global gold prices have slipped to 1-month lows, the Indian gold prices have also declined to 1-week lows.

In the Indian markets though, we are in the middle of the festivities and buyers are looking at various avenues to buy gold. The rupee moves are favorable to lower calculation in rupee terms.

[b]After having seen an all-time high level of Rs 32,400 per 10 gram in the previous month, investors find the current prices relatively lucrative. So there is a strong demand from jewelers and retailers alike on purchases, as prices dipped below Rs 31,000. [/b]

[b]The industry estimate is that with the rupee consolidating at current levels and the global gold prices declining, the Indian gold prices could be headed lower and may go below the Rs 30000 mark per 10 gram. However, levels below that would be favorable for the medium to long-term investors. [/b]

[b]While the current year may have seen its highs in gold and silver, miners and banks feel that gold may well be going in for its 13th year of gains in 2013 on lower interest rates, high inflation and global growth uncertainty.[/b]
[/quote]

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