Kumari Palany & Co

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Price of gold to fall

Posted on: 30/Jul/2015 11:49:23 AM
According to reports the price of gold is likely to drop between $900 to $1050 per ounce. In Indian terms, the amount translates to Rs. 20,500 to Rs. 24,000 per 10 grams. 

According to experts, "The movement in gold prices will largely depend on the US Fed`s interest rate decision. In the event of a US rate hike, global gold prices could drop between $900 per ounce-$1,050 per ounce... The chances of prices falling below $900 per ounce are remote till such time as the uncertainty over growth is reduced, as gold is considered a safe haven against economic uncertainty. In the last six years, on an average central banks across the world  have been the net buyers of 460 tonnes gold annually with the EU, Russia, China and India being the main buyers... The response of gold inventory owners to various developments will be among the strongest drivers of gold prices in the short term. The price correction of around 30 per cent observed between September 2012 and June 2013 was driven by a 20 per cent sell-off by volume of the gold held for such purposes."