The Hindu Business Line : Gold to remain firm this week

NEW DELHI: Gold prices will continue to remain bullish and are expected to hover around Rs 16,000 this week as the US dollar is showing a weakening trend amid a better demand for the metal in the domestic market, analysts said.

“We expect gold to continue with the firm trend to trade at Rs 15,500-16,000 per 10 gram level as the US greenback is weak,” brokerage firm SMC Global's Rajesh Jain said. Gold and dollar generally trend in opposite directions.

The US dollar, which is considered a safe haven, softens due to weakening economic conditions. As dollar declines, many investors and central banks continue to hold gold as their safe haven to protect themselves from unforeseen global economic shocks, bo osting the demand for the yellow metal.

Jain said that last week gold had taken a consolidation due to the past hectic rally and also on reports that the International Monetary Fund is considering to sell one-eighth of its total gold, worth about $13 billion at current price, to provide soft l oans to poor countries.

Religare Commodities Energy and Metals In-Charge Somnath Dey said the bullish trend in gold is likely to continue till Diwali. - PTI

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