New Delhi, Sep 20 (IANS) The Indian bullion prices ended marginally higher this week after slumping from a record high seen on September 16, buoyed by the US Federal Reserve signalling more rate cuts this year.
The price of 24-carat gold (10 grams) started the week at Rs 1,09,603 on Monday, rose to a significant high of Rs 1,10,540 on Tuesday, and ended the week at Rs 109,873, according to data published by the India Bullion and Jewellers Association (IBJA).
“Gold traded range-bound but positive, with gains of 0.38 per cent at $3,657 and 0.26 per cent at Rs 1,09,330, as Fed’s policy supported the recent rate cut while keeping the door open for two more cuts based on incoming data,” said analysts.
Prices continue to hold firm, with focus now shifting to next week’s key US data — GDP, Manufacturing and Services PMI, and PCE Price Index — which will guide further trends, he said.
Gold is expected to trade in the range between Rs 1,07,500 and Rs 1,11,000, he added.
On September 17, the spot prices touched an eye-watering $3,683 per troy ounce—an all-time high, and up 43 per cent this year. Meanwhile, in the domestic market, MCX October futures quoted Rs 1,10,138 per 10 grams.
With the US labour data showing signs of softening, the Fed’s recent dovish comments have reduced the opportunity cost of holding gold, luring risk-averse investors into bullion.
Central banks, particularly in Asia, are stocking up, reducing reliance on the dollar, according to multiple media reports.
Risk-averse investors increased their bets on bullion as a result of geopolitical developments, including Middle East tensions and Sino-US trade frictions.
Analysts, however, cautioned that the rally may be overextended and reminded investors that gold peaked in 2011 before entering a prolonged decline as speculative inflows reversed.
Traders will focus on next week’s US economic releases for insights into the Fed’s direction, while Indian consumers and jewellers keep focus on domestic festive-season demand.
–IANS
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