Gold May Soar to $990-$1000/oz in Int'l Markets This Week
Source: Commodity Online (7/27/09)
"An appreciating rupee may lead to waning demand for the metal, taking some shine off gold."
"Gold prices are going to go up this week. The global dollar index is falling and this is making gold to surge to record levels. So investors with good gold positions are going to benefit this week," predicted Dubai-based bullion analyst Mark Robinson.
Robinson told Commodity Online that gold remains bullish in the global markets as the most-performing commodity. "I think gold price will surge to a record $990-$1000 per ounce this week on the continuing weakness in U.S. dollar," he added.
But analysts in India said the domestic rates of gold are unlikely to track the global cues, thanks to a stronger rupee.
The forecast surely would bring cheer to retail buyers ahead of the commencement of marriage and festival seasons, but those wishing to redeem their gold investments would have to wait longer. Gold prices were ruling above the 15,000-level in bullion markets, which experts say psychologically deterring for buyers.
"Gold remains bullish in the international markets as dollar is under pressure and it may reach $970 an ounce (28.34 grams). However, domestic prices are likely to be stable with an upward bias with rupee appreciating,'' brokerage firm SMC Global's Rajes Jain told PTI.
Global prices usually set the tone for domestic prices, but rupee gaining strength may change the rules of the game this week. An appreciating rupee may lead to waning demand for the metal, taking some shine off gold. The rupee closed at 47.90/91 against the dollar on Friday.