MUMBAI: Fresh buying in physical gold has started with prices consolidating last week. This is unusual as this is not considered the time for stockists to purchase physical gold.
However, because prices have been high this year, they are buying ahead of an anticipated price rise next year.The price in the international market consolidated, closing lower by close to $8 per ounce, and in the Indian market the prices lost between Rs 200-500 per 10 gm.
This fuelled the buying. "The sales have picked up considerably from last month," said Chennai-based India Bullion’s Krishna Nathani. However, he said because of the high prevailing prices, the volumes of sales are low compared with the same time last year. Since the festival season sales were very poor, any dip in prices proves a good time to stock up on gold.
Fresh markets like Indonesia, Thailand and Singapore are also reported to be witnessing physical buying, as prices dropped globally. According to analysts, prices are well supported at these levels and there are fewer chances of prices correcting from here.
"Next trend might emerge depending on whether crude oil takes an upturn or a downturn after the Opec meeting on December 5," MAPE Admisi Commodity Research stated. Gold price saw a marginal hike on Monday with the dollar dipping and oil prices firming up ahead of key data on manufacturing in the United States. The prices were lower last week, mainly because of European Central Bank's sale of 42 tonnes of gold.
The current pull back in gold is seen only a temporary stopgap before it climbs again. A poorly performing US dollar is ensuring that interest in gold is kept alive.
However, because prices have been high this year, they are buying ahead of an anticipated price rise next year.The price in the international market consolidated, closing lower by close to $8 per ounce, and in the Indian market the prices lost between Rs 200-500 per 10 gm.
This fuelled the buying. "The sales have picked up considerably from last month," said Chennai-based India Bullion’s Krishna Nathani. However, he said because of the high prevailing prices, the volumes of sales are low compared with the same time last year. Since the festival season sales were very poor, any dip in prices proves a good time to stock up on gold.
Fresh markets like Indonesia, Thailand and Singapore are also reported to be witnessing physical buying, as prices dropped globally. According to analysts, prices are well supported at these levels and there are fewer chances of prices correcting from here.
"Next trend might emerge depending on whether crude oil takes an upturn or a downturn after the Opec meeting on December 5," MAPE Admisi Commodity Research stated. Gold price saw a marginal hike on Monday with the dollar dipping and oil prices firming up ahead of key data on manufacturing in the United States. The prices were lower last week, mainly because of European Central Bank's sale of 42 tonnes of gold.
The current pull back in gold is seen only a temporary stopgap before it climbs again. A poorly performing US dollar is ensuring that interest in gold is kept alive.
No comments:
Post a Comment