After running on a high, gold prices drop
Posted on: 05/Oct/2015 10:56:33 AM
Gold prices have dropped to Rs. 26,000 per 10 grams after riding on a high. In August this year, the price for 10 grams was Rs. 27,200. The change has been attributed to weak demand and recovery in local currency. The rise in dollar index is also considered to be a factor in the price change.
Say experts, Gold prices could see some near term support due to the upcoming festive demand... The prices of gold rallied higher in the domestic market when the rupee fell from 64 to 66.80 per dollar. However, it reversed most of its gains once the local currency stabilised and rallied higher against the dollar... The US non farm payroll data released was below expectations. So most of the market participants now feel that the US Fed Reserve may not hike interest rate in its meeting scheduled at the end of this month. Moreover, the rupee is also enjoying good support at 64.90/65 level mark against the dollar. So the gold prices could see some support in the immediate future.
