Whither gold?

RAJALAKSHMI NIRMAL | Updated on January 22, 2018

Gold’s negative reaction to the Fed rate hike has been quite muted. On Thursday, after the Fed rate hike news, global gold prices dropped about 2 per cent and ended the day at $1,051/ounce. But in Friday’s session, gold recouped some of the losses and ended at $1,066/ounce, down only 0.7 per cent for the week. Technically, there is risk of further correction in the short term. If $1,046/ounce is breached, a further fall may be in the offing. However, if it gains enough strength to breach $1,090/ounce, a short-term rally will be in place. In the domestic market, investors should keep an eye on the rupee for cues to bullion. The MCX gold futures contract appears weak. It may try to break below support at ₹24,500 levels this week. On the upside, the resistance is at ₹25,500 and ₹25,800.

Published on December 20, 2015

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