Gold prices see some partial recovery after over Rs 5,250/10 gm fall in 3 sessions
Gold prices which have slumped a great deal on the budget announcement of a custom duty relaxation has gained some strength in Friday's session.
Gold price see sharp fall
Gold prices recover marginally after steep slide post the Budget announcement of customs duty reduction. On MCX, Gold August futures traded with gains of 0.6 per cent at Rs 67,763 per 10 gm.
Strengthening rate cut expectation might be pushing the commodity higher
Real gross domestic product increased at a 2.8 per cent annualized pace in the second quarter in the US, above the 2.1 per cent forecast, bolstering hopes of a rate cut by the US as early as September.
Whats leading to a fall in the commodity?
Mahendra Luniya, Digital Gold Expert, Chairman, Vighnaharta Gold opined that after FM slashed the customs duty on gold and silver there has been a steep correction in the bullion which is expected to last for a short time. Also, he adds that the current correction could be attributed to lack of clarity about the changes effected as well as due to traders selling off their positions in the bullion.
Further, he goes on to say that this impact shall be short-term and as the development has triggered aggressive buying in the commodity in the domestic markets, gold will again get a push.
Does the budget announcement should trigger your buying decision in gold?
As the long-term outlook in the precious yellow metal remains strong and in a matter of few years we may see it to hit Rs 1,00,000 levels and the price is unlikely to go down even to levels of Rs 65,000 per 10 gm in the spot market, investors are adviced to buy the metal now. Also, in case you need to buy the commodity in the physical form for wedding or similar purpose, the time is apt note the experts.
Levels that shall determine trajectory of gold next
In the Indian market, the situation is more complex due to duty adjustments and the rupee's movement against the dollar, making it challenging to pinpoint exact levels. However, Rs 67500 will serve as a significant make-or-break point in India, Rahul kalantri VP commodities at Mehta Equities noted.