Gold Prices in India on Wednesday (July 15, 2020) tumbled by a tad 0.08% or Rs. 41 in early trade to Rs. 49218 per 10 gm. This is even as prices in global markets steadied above levels of $1800 per ounce. This is primarily owing to depreciation in rupee against the dollar.
Gold prices in the international markets today steadied up at levels above $1800 per ounce. The upside momentum as well as corona concerns will continue to support the yellow precious metal.
"Although the mood on Wall Street returned to upbeat, the record amounts of bank bad debt provisioning overnight, and comments from the Federal Reserve, are giving bullish investors pause for concern."
Also, the escalation in US-China tension will further give an upward push to the bullion.
In its mid-year outlook report by the World Gold Council there is said that mix of high risk, low opportunity cost as well as positive price momentum will be supportive of gold investment as well as offset weakness in offtake of gold from an economic contraction.
Gold has been lapped up this year as a portfolio hedging strategy and expectations of a slower recovery i.e. U shaped or potential setbacks from additional waves of infections (W-shaped), WGC noted.
"Market participants will focus on industrial production data expected from major economies and inflation numbers expected from the US. SPDR Gold Trust the world's largest gold-backed exchange-traded fund, said its holdings rose 0.3 percent to 1,203.97 tonnes on Monday", said Navneet Damani, Vice President, Motilal Oswal.