Gold prices to drop down drastically
Posted on: 27/Jul/2015 9:35:40 AM
Gold prices are expected to drop to a low of Rs 23,000 per 10 gram. This is mainly because the market is nervous of the outcome before July 29, when the US Federal Reserve will take a decision on rate hike. Whatever the decision, it will be negative for gold.
The gold was at Rs 24,752 per 10 grams on Saturday, and $1,097.50 an ounce in the international market. Domestic prices of gold, however, will be cushioned if the rupee weakens against the American currency. Gold prices are likely to be in a range between Rs 23,500 and 24,000 by the end of December. In the domestic market, the prices have fallen from a high of Rs 34,000 per 10 grams to a low of Rs 24,700 - losing more than 27 per cent, in a span of nine months.
The prices may go down further to Rs 23,500 with China offloading the yellow metal from its reserves to withstand the current economic crisis.
