Gold prices are expected to drop to a low of Rs 23,000 per 10 gm on continuing worries over interest rate hike by Federal Reserve and stronger US dollar, analysts say.
“The gold remains bearish and the prices are likely to decline to Rs 23,000-23,500 per 10 grams in a week to month time. This is mainly because the market is nervous of the outcome before July 29, when the US Federal Reserve will take a decision on rate hike. Whatever the decision, it will be negative for gold,” Commtrendz Research Director Gnanasekar Thiagarajan told PTI here.
The gold MCX on Saturday was at Rs 24,752 per 10 grams and $1,097.50 in international market.
With the US Federal Reserve hiking the rates looking imminent, the question now is by how much and when, which is keeping the market volatile till a final decision is taken, he added.
In international markets the prices are likely to weaken to $1,020 an ounce in a week or month, he said adding, however, it may crack below $1,000-level.
Back home, however, the prices of gold will be cushioned if the rupee weakens against the US dollar.
At present, there is demand from stockists, who are gearing up for the coming festivals, even as the retail demand has declined, he said.Courtesy: Agencies (PTI)
