Mumbai: Gold prices are expected to come down to a low of Rs 23,000 per 10 grams on continuing worries over interest rate hikes by the Federal Reserve and a stronger US dollar.
“The gold remains bearish and the prices are likely to decline to Rs 23,000-23,500 per 10 grams in a week to month time. 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,” Commtrendz research director Gnanasekar Thiagarajan says, according to a report published in profit.ndtv.com.
The MCX gold was at Rs 24,752 per 10 grams on Saturday, and $1,097.50 an ounce in the international market.
Mr Thiagarajan said that with a hike in rates by the US central bank looking imminent, the question now is by how much and when, which is keeping the market volatile till a final decision is taken.
In international markets, the prices are likely to weaken to $1,020 an ounce in a week or month. He added that the price may also crack below the $1,000 level.
Domestic prices of gold, however, will be cushioned if the rupee weakens against the American currency.