Colin Shah, MD, Kama Jewelry shared his views on gold prices hitting a 3-month low. He said ‘Gold prices were trading with mixed cues till the Fed announced its monetary policy on Wednesday.
The Fed holding rates were very much on expected lines, but the commentary indicated at least 2 more rate hikes in the current cycle. This led to a rise in The dollar index to near 103 level thereby making it expensive to buy gold. Gold prices have hit a 3-month low internationally and a 2-month low domestically. Despite the fall, gold has posted more than 7% returns YTD in INR terms.
“Moving forward, we expect gold prices to be stable, a recession - mild or strong in the US may lead to US Fed softening its stance, thereby pushing up the gold prices. Gold prices are likely to find support at $1,930 (Internationally) and INR 58,500(Domestic market).”
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