Gold prices expected to remain steady amid weakness in rupee, onset of festive season
Given the ongoing trend of global central banks acquiring gold and the uncertain global economic landscape, gold prices are anticipated to remain steady, if not rise significantly due to the impact of a stronger dollar and elevated interest rates, said Jateen Trivedi, VP Research Analyst at LKP Securities.
IANS
Aug 22, 2023 06:08
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New Delhi, Aug 22 (IANS) Given the ongoing trend of global central banks acquiring gold and the uncertain global economic landscape, gold prices are anticipated to remain steady, if not rise significantly due to the impact of a stronger dollar and elevated interest rates, said Jateen Trivedi, VP Research Analyst at LKP Securities.
However, the trajectory could swiftly change. The moment the US Federal Reserve hints at a potential pause in its rate hikes or even the possibility of an interest rate cut, gold prices are likely to surge, the analyst said.
With the rupee showing signs of weakness against the dollar and the festive season in India just around the corner, investors should consider capitalising on the positive trend in gold.
The robust festive demand in India is poised to maintain a stable gold price. For investors seeking to accumulate gold, a strategic entry point lies between the current levels of Rs 58,500 and Rs 57,000 (per 10 gm), the analyst said.
Taking these factors into account, investors can reasonably project an optimistic outlook for gold, foreseeing price levels in the range of Rs 61,000 to Rs 62,000 by the close of the year. It's a strategic move that aligns with both the weakening rupee and the traditional buoyancy of the festive season in India, Trivedi said.
