Finally, some good news for the yellow metal

Suresh P Iyengar | | Updated on: Dec 06, 2021

bullion

The mayhem in the financial markets has come as a blessing in disguise for gold, reversing the down slide in prices in last few days.

The rupee depreciation has made gold costlier in the domestic markets and revived some buying interest.

Speaking to BusinessLine , Navin Mathur, Associate Director (Commodities & Currency), Angel Broking, said the reversal in gold price trend especially in rupee term may instil some confidence in buyers who have shunned the yellow metal after the sharp fall in prices.

“The way developments in financial markets are unfolding it is difficult to convince that the bullish trend in gold will sustain in long term as the US Federal is gearing up to hike interest rate. The devaluation of yuan will have a major ramification in emerging markets,” he added.

Ajay Kumar Kedia of Kedia Commodity Comtrade said gold is the only commodity that has bucked the falling price trend and seen lot of buying interest in the future market.

The premium (paid for sourcing gold) has gone up from -$9 an ounce (meaning a buyer will get a discount if he is willing to take delivery) to $2, a strong indication that the high prices may sustain for few month, he said.

Somasundaram PR, Managing Director, World Gold Council said the demand for gold would revive with festival season round the corner.

However, weak monsoon is parts of India may temper purchasing especially in rural regions bit, he said.

On Monday, standard and pure gold gained by ₹80 per 10 grams to ₹27,380 and ₹27,530 while silver was down at ₹36,600 a kg (₹37,000).

Published on August 24, 2015
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