Dec 11, 2008, 05.58 PM | Source: CNBC-TV18
If USD 835 per ounce is breached on the higher side on the Gold, then USD 850 per ounce is where one could see gold heading in the coming few days.
Manisha Gupta (more)
Commodities Editor, CNBC-TV18 |
We have seen good gains in precious metal prices. Ditto is the case with energy as well. It is overall buying in commodities that has supported gold prices as well. Yesterday we saw 4% gains in gold and today it is 2% higher. USD 800 per ounce is holding and we have seen highs of USD 828 per ounce as well in the markets and more gain is what the markets are expecting because we have seen the US dollar decline. The sentiment for the dollar really is souring because the markets expect the US debt obligations to only get severe from here as the US comes out with more bailout packages.
Also, December 16 is when the FOMC may announce another rate cut. That also is working in favour of the precious metal prices and that is why support is coming in gold at this point. Inflation fears are back. If USD 835 per ounce is breached on the higher side, then USD 850 per ounce is where you could see gold heading in the coming few days.