It is expected that the gold will stay under the pressure in international markets amid the situation of a strong dollar index (DXY), and high range of US bond yields, with significant impact on the local prices, additional to the resume of trading in the next week.Â
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Views and opinions of the experts
Anuj Gupta is an expert in the Head Commodities and currency at HDFC Securities, who gave the statement that gold has been losing its intriguity over fears of inflanatory situations and continuity of high interest rate reign in the international markets, for much longer anticipated period.Â
He further said that this is strengthening the dollar index and raising the yields of the bonds. He made the assumption that gold along with silver will be trading sideways in the next week, surrounded by strong resistance at the high levels.
Another expert which considers the Vice Principal of the Fundamental Currencies and Commodities, Praveen Singh, expressed views somewhat similar to Anuj Gupta.
He made the statement that gold is being left with limited upside, further suggesting that the traders can expect a range of trading between nearly $1860 to $1930 of the amount.
It is predicted that when news based stimulus is not present, it it not probable for a spurt of purchase to occur, which if happened could have took the prices of gold higher, in accordance with the statement given by Praveen Singh.Â
Data and statistics (in figures)
The Multi Commodity exchange of India Limited or the MCX of Gold Futures have revised a rate of about 5.6 per cent which is amounting to near Rs 3400 from April highs of Rs 61,800, although, they are still trading up by rate of 6 per cent which makes up Rs 3350 on the basis of year to date.Â
In the month of August, the gold prices have been revised by rate of 2 per cent, which makes up Rs 1193 per 10 grams of gold.
The gold futures have fell by quite of an amount. On the Multi Commodity exchange platform, the contracts of gold for the delivery of october, traded at a lower amount by Rs 166, which is nearly 0.28 per cent. By this amount and rate, it fell to Rs 58,515 per 10 grams of gold in a business turnover making up 13,537 lots.
In the global conditions, gold was trading at rate 0.12 percent lower.Â
Power of US Dollar and other instruments over Gold
Gold price movement is very directly related to how a dollar changes or makes a movement.
The revision has been on the back at the rate of 0.57 per cent of gains in the dollar index or DXY, in a number of five sessions with a jump at the rate of 2.37 per cent in a month.
The import of commodities which are dollar priced also generate a significant impact on the US Dollar and witnesses a bearing situation.
The dollar index is presently hovering over a mark of 103 against the collective amount of six top currencies.
The chief market strategist at the Blue Line Futures, Streible, made an honest statement that gold is unable to compete in the current market situation. Specifically, he said that Gold in currently competing with other instruments and is performing relatively low. The other instruments such as the bonds are generating a yield of as much as around 4 to 5 per cent, however, gold is not able to generate such yields comparatively.
