66.825 United States Dollar
The slip in gold is confusing. The precious commodity climbs in a risk averse environment and the phase that we are in, is certainly risky. Gold falling to a four and half month low is surprising, given its “safe haven” status, and its proven track record in the past. In fact, gold and stock markets never tango and the present move in the same direction is surprising.
US June gold futures, have now hit a low of $1,532.7 an ounce, the lowest level since late December and cash gold has followed.
The rupee is all set to breach a historic low of Rs 54.30 reached in December. Once a “high-flyer”, the rupee has fallen 9% since March, 2012.
At 10.30 am IST it was trading at 54.23, eight paise away from its record low. Slower portfolio inflows from FIIs, rising trade deficit and current account deficit, rising fiscal deficit and a general risk averse environment have dragged the rupee lower.
Markets are all set to drift below 16,000 (Sensex) levels - a level not seen since early January, 2012. The Sensex is trading at 16025 points, just a tad higher than the physcological level of 16,000.
There are a series of bad news that the markets are grappling with, including high inflation, political mayhem in Greece, weak rupee, weak IIP data, political paralysis, rising fiscal deficit, rising current account deficit and elevated inflation levels.
Good news and the stock markets never move work in tandem.
In the present context one can't help but remember Warren Buffet's advice, "buy when everybody is fearful and be fearful when everybody is buying,"