Gold Prices Slipped in Seven


BENGALURU: We all know about the tidal rise and fall of the Gold rates every often. Gold price has come down for the first time since May. Wall Street journal has reported that there was 0.6 percent rise in Gold sales in June, in contrast to the expected 0.1 percent increase due to the Gold rates.

"In the short term, we can see some more pressure towards 1,300 US dollars as the focus is back on the US after strong economic data, which increases the probability of a rate hike before the end of the year," said Carsten Fritsch, Analyst, Commerz bank.

As we know, there is some inverse proportion relationship between Gold and US economy. Higher US rates tends to reduce the cost of Gold as they grab the non-yielding bullion. In the past six weeks, Gold has fell 2.5 percent. Due to the hit by strong US non-farm payrolls data and as uncertainty around the implications of Britain's Brexit vote led way to the formation of new government Gold rates are under trouble. The current price has come down up to $1,326 an ounce.

"Investors are taking profits, but 1,300 US dollars is now a floor for gold and that is going to hold moving forward," said Hamza Khan, Senior Strategist of ING Bank. "Wider political issues such as the US elections and then French and German elections next year are enough to support gold even though markets are rallying on the low interest rates environment and the quest for yields."

US dollar saw the biggest weekly gain against Yen in 17 years and in turn pushed the world's largest gold-backed exchange-traded fund—SPDR Gold Trust down by 0.25 percent. Whereas, consumers in India made the most of this situation, by earning more profits on their gold holdings.

Similar to Gold, other precious metals like Platinum and Silver fell by 1.7 percent at 1080.50 US dollars and 0.9 percent at 20.11 US dollars an ounce, respectively. In contrast, Palladium grew higher in early November at 652 US dollars.

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