Chennai: Gold prices in the Indian market touched all-time high levels on Thursday as prices in the international market rallied to seven-year high levels on the back of subdued outlook on Chinese economy coupled with weakness in Japanese yen and Euro.
in the new delhi spot market, gold gained rs 500 per 10 gm to touch rs 42,800, while the multi commodity exchange too witnessed a record high of rs 41,940 per 10 gm.
红包扫雷下载即送in the international market, gold revisited seven-year high levels of $1,618 per ounce as the coronavirus infection continued to fuel uncertainties around the chinese economy and its impact on the global economy.
红包扫雷下载即送“however, coronavirus alone has not been triggering the price rally. the japanese yen and the euro have seen considerable weakness in the recent times. the devalued yen is pointing towards a weaker japanese economy. similarly, the brexit is hurting the euro,” said jateen trivedi, senior research analyst, commodities and currencies, lkp securities.
according to him, gold also has been moving independently as an asset class. since january, gold and the us dollar have been moving in tandem. the safe haven assets usually have an inverse co-relation. the weakness in euro and yen has been strengthening the dollar, while safe haven demand has been increasingly seeing hedge positions created in gold.
analysts are having divergent views on the outlook of gold in the medium-term. some find that gold is in for some correction in the near-term but the others think the rally could continue towards $1,650 levels.
“hints that the deadly virus spread is under control and aggressive policy easing measures taken by china to shore up the economy is likely to hit gold’s safe haven demand. a strong us dollar and moderate physical market activities will also influence the sentiments. meanwhile, prevailing global economic uncertainties may limit major liquidation pressure in the counter,” said hareesh v, head commodity, geojit financial services.
but analysts like trivedi see a straight rally for gold before profit-booking pulls back the metal. “prices can move up towards $1,650-$1,660 levels by march-end. at those levels, we might see some profit-booking that can even bring back the prices towards $1550,” said trivedi....