Gold Eyeing Indian Retail Demand

24 Oct 2022 , 06:07 PM

Gold came under pressure last week as higher treasury yields dragged the dollar higher weighing down bullion prices. Yields on U.S. Treasuries continued their relentless march higher to the highest in around a decade and half, strengthening expectations of a strong Fed rate hike. COMEX Gold dipped to around three week low near $1620 per ounce following the latest slide. However, COMEX Gold futures moved up thereafter as a positive outlook on near term Indian demand boosted the sentiments. The shiny metal is expected to see good demand ahead of Diwali as retail markets are witnessing excellent momentum. Meanwhile, the Indian government has cut the base import price on gold to $531 per 10 grams, from $533. The yellow metal moved back above $1650 per ounce, holding onto the latest gains. Spot prices are hovering around Rs 50000 per 10 grams mark in local markets, enticing the consumers after rather tepid festive seasons over last two years due to Covid-19. MCX Gold futures are looking for a mixed start in Muhurat session after ending up around 1% at Rs 50635 per 10 grmas in last session.Powered by Commodity Insights