Gold may shed Rs600 on weak global cues: Analysts

Gold may shed Rs600 on weak global cues: Analysts
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First Published: Sun, Sep 07 2008. 11 42 AM IST
Updated: Sun, Sep 07 2008. 11 42 AM IST
PTI
New Delhi: Gold prices will continue to show weakening trend this week and is likely to further shed up to Rs600 in the futures market on the back of lower crude oil prices and strengthening US dollar, say analysts.
The prices of the precious metal would hover in the range of Rs12,000-11,100 per 10 gram, Karvy Comtrade’s analyst Bhavna Glory said.
“Gold is likely to shed Rs500-600 per 10 gram this week,” she pointed out.
According to analysts, if the precious metal breaches the projected lower limit of Rs11,100, the prices could go down up to Rs10,700 level per 10 gram.
Meanwhile, in the international market, the spot prices of the precious metal are likely to trade between $820-770 an ounce.
Further, experts feel that if gold tumbles below the lower level of $770 per ounce, then the metal could be as cheap as $750.
Another dampener for the precious metal could be the Industrial Production figures from the Eurozone, expected to be released this week.
“This week, the Industrial Production Index figures from Europe is expected to be negative, which would have a negative impact for both the Euro and the bullion,” Bhavna Glory pointed out.
Moreover, the Advance Retail Sales data from the US, which has been on the decline and figures of US Trade Deficit, could bring down the gold prices further.
Noting that gold would be on the downward trajectory in the coming days, Religare Commodities metals and Energy Research In-charge Somnath Dey said: “The only good thing for gold is the festive season in India, but it amounts to only 5%.”
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First Published: Sun, Sep 07 2008. 11 42 AM IST
More Topics: Gold | India | Outlook | Commodities | Futures |