Gold & Silver

Gold will shine, but not other commodities

Suresh P. Iyengar Mumbai | Updated on March 12, 2018

The downgrade of US' rating by Standard & Poor's may provide another reason for gold prices to hit a new high on commodity markets. The yellow metal has been testing new highs for the last few days on the concern of high inflation and sharp fall in stock market.

Mr Navin Mathur, Associate Director (Commodities & Currency), Angel Broking, said the US' downgrade will be a positive development for gold, but silver may turn volatile as its demand relies partly on industrial usage as well.

On Saturday, gold on MCX gained two per cent to Rs 24,650 for 10 grams, hinting on the possible upward bias on Monday.

The fall in equity markets has seen a substantial fund flow into precious metals including silver, leading to substantial appreciation in prices. With the US downgrade, expectations are rife on further fall in equity markets on Monday.

Ms Smita Sinha, Head-Advisory Desk, Karvy Comtrade, said taking cues from the international markets, crude oil and base metals such as aluminium, copper, zinc, lead and nickel may witness a sharp fall on the commodity futures markets.

“The weak sentiment may impact agriculture commodities and most of them may end lower. Export oriented agriculture commodities such as pepper and cardamom had hit their lower circuit on Friday and will continue to fall,” she added.

The depreciation of rupee against dollar by 18 paise on Friday had led to large scale buying of gold by Indian jewellers. Rupee depreciation against dollar makes gold cheaper for Indian buyers.

Published on August 06, 2011

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