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Gold outlook: Firm signal ahead of weddings, festival

Gold outlook: Firm signal ahead of weddings, festival
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First Published: Tue, Apr 10 2007. 12 56 AM IST
Updated: Tue, Apr 10 2007. 12 56 AM IST
Mumbai: Indian gold prices are seen firmer this week on bullish overseas signals and expectations of a pick-up in local buying as weddings and a festival approach, analysts said on 9 April.
Overseas gold was flat on 9 April amid thin trading after Easter holidays, but analysts said they expected a fresh round of investment buying spurred by the metal’s appeal as a bet against inflation.
“The fundamental strength is very much intact in gold,” Si Kannan, associate vice-president at Kotak Commodity Services Ltd said, adding there could be a slight fall initially, but prices would rise later in the week. Analysts said the softening of gold, due to last week’s healthy US jobs report and the end to the Iran-UK crisis after the former released captive British sailors, was only temporary.
“If the US data for this week comes in line with expectations, the dollar could lose its strength,” said an analyst at IL&FS Investsmart Commodities Ltd.
Analysts said the forthcoming Akshaya Trithiai gold-buying could also support prices this week. The festival falls next week, but manufacturers are looking to buy gold to fill up shelves with gold jewellery, and other items, many of them as tiny as half a gram.
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First Published: Tue, Apr 10 2007. 12 56 AM IST
More Topics: Money Matters | Commodities |