Gold Falls From 2-Year Highs As Investors Book Profit

Business

oi-Sunil Fernandes

By Sunil Fernandes

Published: Tuesday, July 5, 2016, 12:01 [IST]

Gold dropped from 2-year highs, as investors booked profits at higher levels. Spot gold in the international markets was down marginally by 0.7 percent at $1,345 an ounce. The precious metal had surged to a high of as much as $1,357.60 an ounce, which was almost a 2-year peak.

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Many dealers believe that the rally in gold could be short lived and we may see a profit booking in the coming days. This is largely on account of fears of a Brexit now behind us and lack of any triggers.

In the domestic markets gold had surged past the Rs 32,000 mark and was now increasingly looking at breaching most technical levels.

The rupee had strengthened marginally in the last couple of days, which could make gold a tad cheaper. However, a rally in gold prices internationally meant that the upside would be intact.

Meanwhile, the rally in gold has been accompanied by a rally in equities across the globe, which is a rare phenomenon.

Normally, when gold prices rally, equities tend to be sold into, but, this time both gold and equities have rallied simultaneously.

There maybe some more downtick in gold prices analysts say after the fast and furious rise, since the start of the year.

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