Business Wire India
Gold hitting newer and newer lows have been a current trend confirming a bearish view on the metal’s safe haven appeal, stated Mr. Prithviraj Kothari, Managing Director –RiddiSiddhi Bullions Ltd. (RSBL).
He cited various reasons:
- Death of uncertainties and acceptance of the same as a new norm
- Central banks of the world getting their ticks right to push the economic growth via fiscal and monetary measures
- Physical buying cushion; getting softer
- Massive reduction in geopolitical tensions with UN forces keeping a check on the extremists
The upcoming FED meeting will give a glimpse to the US economy getting strengthened. Almost a 100% prediction for a Rate cut in this meeting has put a downward pressure on Gold. Over the course of 2017, there is an expectation that interest rates would be raised by the US Federal Reserve.
Meanwhile, US Dollar has gained a lot of attention due to a rise in US treasury yields and US equity markets causing a downward spiral in Gold prices.
Furthermore, if the recent election outcomes and market reactions to them have taught us anything, it’s that nothing is certain in politics, the global economy and the markets. While I say this, I do understand that the investors have used recent Gold rallies to unwind existing long positions and this is treated unhealthy for an asset’s performance.
While domestic prices would be supported by the Rupee weakness, overall Gold in Dollar terms would trader in the range of US$ 1,080 to US$ 1,200, while Silver would trade in the range of US$ 14.70 to US$ 18.20. In Rupee terms a range of INR 28,200 to INR 29,700 is expected for Gold while INR 39,000 to INR 44,000 is expected for Silver.
Photo Caption: Mr. Prithviraj Kothari, MD - RSBL