Here is a roundup of all the key happenings in the commodities market.
As of 9:44 am IST, spot gold was up 0.3 percent at $1,490.09 per ounce
US-China trade concerns have been lingering over global markets since last year however gold failed to benefit as we saw a rush towards the US dollar.
Compared to gold, all equity fund categories have delivered negative average returns in the last one year
Central banks have bought net 224.4 tonnes of Gold in April-June quarter of 2019, and a total of 374 tonnes is H12019, the highest purchase in the first half of any year in 19 years according to World Gold Council data.
The International Monetary Fund (IMF) on July 23 lowered its global growth forecast for this year and the next, warning that more US-China tariffs, auto tariffs or a disorderly Brexit could further dampen growth, weaken investment and disrupt supply chains.
With the trade war between the US and China encouraged investors to seek refuge in the safe haven.
Trade negotiations over tariffs between the US and China are underway and any movement therein will impact the currencies which in turn will have an effect on gold
For the first time in several weeks, gold is starting to show signs of vulnerability as a key short-term trend line is being hit.
Overcoming a mixed sentiment from global markets, gold prices climbed on account of favourable domestic cues like wedding season demand from local jewellers as well as retailers.
Gold is getting a boost from mounting speculation that the Fed may pause in raising borrowing costs, boosting the appeal of the non-interest-bearing metal
For a third year in a row including 2018, MCX gold has yielded positive returns. For 2019, too, gold looks to be an attractive asset class.
Crude oil could trade in range in between Rs 3,580–3,870 either side break out would give further direction to the trend. Overall we are positive & suggest buying at lower level
MOFSL expects Comex gold prices to be trading with a positive bias on breach of key technical levels, and expects a rally towards $1,265 and $1,290, while support are placed at $1,225 and $1,215
With tensions between China and US dissipating to some extent, industrial demand will grow in China, which will also support silver
Here's a roundup of key updates in the commodities market.
People are moving some capital into gold at this time, given the uncertainties around the pace of rate hikes by the US Federal Reserve and the US-China trade war
Navneet Damani of MOFSL advises to go aggressive on gold and increase the asset allocation to around 10 percent of one’s portfolio.
Experts said as a practice and tradition, one should invest in gold on Dhanteras, the first day of Diwali.
Pritam Patnaik of Reliance Commodities said if the Fed remains hawkish, then more upside momentum is expected for the US dollar. This could weaken the Indian rupee and push the domestic gold prices higher
Chenthil Iyer of Horus Financial Consultants said Sovereign Gold Bonds are a brilliant way of reducing the import bill and at the same time providing a government-backed opportunity for investors to invest in gold
Ravindra V Rao of Anand Rathi Commodities said sentiment regarding oil might be weak this week while the first half of the week might be volatile for base metals.
Rising interest rates boost the greenback by increasing the opportunity cost of holding gold.
Globally, gold steadied below USD 1,300 an ounce ahead of the US payrolls data due later that will be closely watched for clues on outlook for the US interest rate policy.
Gold prices were little changed on Tuesday, as the dollar held on to gains from the previous session after a Federal Reserve official backed the case for further interest rate hikes in the United States.