New Delhi: Investors rushing to capitalize on the recent surge in gold could be in for surprise as analysts have cautioned the metal could trim the gains and trade in the range of Rs13,000-13,600 per 10 grams this week, down by over Rs700 from the record high it scaled last week.
“This week gold prices will see sideways movement with a bias to the lower side and is likely to go up by about Rs250. The projected levels of Rs13,000-13,600 per 10 grams will be mostly driven by the greenback and crude oil,” Karvy Comtrade’s Bhavana Glory told PTI.
Gold prices on 15 July touched an all-time high of Rs13,764 per 10 grams for the August contract on cues from global markets where it peaked to 16-week high of $899.6 an ounce in the Comex.
Brokerage firm Bonanza’s Head, Commodity Research, Tarun Satsangi, was of the opinion that the near-term trading range in the domestic market is likely to be between Rs12,950-13,700 per 10 gram, with an immediate support level of Rs13,130 and a resistance of Rs 13,750.
Analysts said gold surged in international markets on the back of higher energy prices and inflation concerns globally. However, crude rates has fallen since then.
On the domestic front, the metal prices, in tandem with falling crude prices and softening of the dollar, initially traded weak. While oil prices fell to as low as $128 a barrel in New York, the dollar also fell against major currencies.
However, gold recovered in the later part of the week after remarks by the Federal Bank that it may raise interest rates to curb inflation.