The prices of gold continued to ease on Friday after falling the most in a single session in almost 10 months yesterday after RBI eased gold import norms to boost exports and allow stars and premium business houses to import the precious yellow metal.
At noon, gold had fallen to 27,585 rupees per 10 grams. Some recovery was seen in futures market in the early morning trading and Gold prices slipped marginally after noon, MCX gold June contract was trading at Rs 27209 per 10 gram, down Rs 32, or 0.12 percent. The gold rate touched an intraday high of Rs 27349 and an intraday low of Rs 27180.
Analysts say that the outlook for gold remains negative. “By strengthening of rupee is expected the prices of gold falling further,” Commodity Analyst said.
Bullion dealers shared this view. “Narendra Modi will officially take the post on Monday and the rupee is expected to gain more. Thus, the price of the gold will be further reduced,” said Kapil Parekh, executive director of the India Association of Jewellers and bullion.
It is hoped that the gold premium will also decrease after deciding of the RBI to facilitate the offering on the market. “Gold will be much lower over the coming weeks,” Parekh said. Gold imports to climb 15 to 20 tons per month, resulting in increased market availability.
In the international marketplace, gold traded below $ 1,300 an ounce with little change this week as investors weigh the health of the U.S. economy and the impact of monetary stimulus.
Gold for immediate delivery was trading at $ 1294.13 an ounce in Singapore in accordance with Bloomberg generic prices. The metal rose 0.2% to $ 1294.10 on Thursday after data showed unemployment claims in the U.S. rose more than expected.
Gold has progressed 7.7% this year because to disturbances in Ukraine and the concern that the U.S. economic recovery could be fragile. Applications for jobless benefits rose to 326,000 in the U.S. in the week ended on May 17.
News by Economictimes
100 MCX Tips, is a leading commodity advisory, share trending news & updates for bullion gold, silver commodity market. Follow us on Twitter (https://twitter.com/100mcxtips) and on Facebook at (https://www.facebook.com/100mcxtips)