Gold Prices Slip to $1730/oz; More Fall Anticipated For Lustrous Metal

Gold which in early Asian trade was up by a tad has again lost its sheen to strengthening dollar. Dollar gains are fuelled by the fact that the US Fed Reserve shall continue to move ahead with its monetary tightening measure as the economic data lately of the jobs data has come in strong.

Spot Gold

In the international markets, spot gold last fell to $1730 per ounce and in the futures market it has even breached to below $1730 and quoted at $1727 per ounce as at 10:15 IST. Fall in gold price is seen even as the 10-year US yield has softened by close to 1%. Remember gold prices show inverse movement with dollar index and 10-year US treasury yield.

For now, investors await the crucial US inflation data which shall offer guidance to the likely Fed stance. Economies world over are favoring that inflation be given a priority over economic growth concern.

Gold price in India

Defying trend in the overseas markets, gold August futures are up by a tad primarily on the back of the depreciating rupee which has hit record lows amid crude oil and other concerns. Last the gold futures traded at Rs. 50,593 per 10 gm, down by a quantum.

Gold rate outlook going forward

Experts see more fall in gold prices going forward and there is seen and anticipated further fall to $1650 per ounce. This is as the gold prices continue to test its long time support placed at $1730 per ounce.