npavan78
24-03-2009, 06:59 AM
Gold futures are likely to remain firm at above Rs 15,000 per 10 gram level in the coming days on weakening dollar after reports of
the US Federal Reserve taking measures to ease the credit crisis, say analysts.
"With the US Fed pumping in money, the dollar will depreciate and this will be positive for the gold prices," brokerage firm Karvy Comtrade's Vishal Manniyar said.
Last week, the US Dollar Index (USDX) crashed below 80 after the Fed cut rate to zero per cent. "Gold futures are likely to move in the range of Rs 15,100-15,600 per 10 gram in the next 10 days, Manniyar said.
The weak economic data in the US, which shrank by 6.6 per cent as per the final estimates, might put pressure on the equity markets, that will boost the precious metal, he said.
The Gold April contract was trading at Rs 15,430 per 10 gram on Multi Commodity Exchange. At international markets, it was quoted at USD 952.48 an ounce (28.34 gram).
SMC Global's Rajesh Jain said gold prices are likely to remain on the higher side as the weak dollar will pushed up the euro. Strong euro will support gold as the precious metal is positively correlated with euro.
Gold is likely to trade in the range of Rs 15,000-15,600 per 10 gram level and in the international market it will test USD 950-1,000 an ounce level in the coming days, Jain added.
Religare Commodities Metals and Energy's Research in-charge Somnath Dey said gold is likely to be very bullish and will trade at Rs 16,200 per 10 gram level.
"This is the second time since 1960 that the US Fed has said it will buy treasury, meaning they will inject more money which will devalue the dollar, supporting the bullish trend in gold," he reasoned.
However, Bonanza Commodity Broker's Assistant Vice President Tarun Satsangi said that the market is creating a bullion trap or false breakout for gold, which may move sideways in the range of Rs 15,100-15,700 per 10 gram the near term.
In the international market, the precious metal may move in the range of USD 920-980 an ounce level.
the US Federal Reserve taking measures to ease the credit crisis, say analysts.
"With the US Fed pumping in money, the dollar will depreciate and this will be positive for the gold prices," brokerage firm Karvy Comtrade's Vishal Manniyar said.
Last week, the US Dollar Index (USDX) crashed below 80 after the Fed cut rate to zero per cent. "Gold futures are likely to move in the range of Rs 15,100-15,600 per 10 gram in the next 10 days, Manniyar said.
The weak economic data in the US, which shrank by 6.6 per cent as per the final estimates, might put pressure on the equity markets, that will boost the precious metal, he said.
The Gold April contract was trading at Rs 15,430 per 10 gram on Multi Commodity Exchange. At international markets, it was quoted at USD 952.48 an ounce (28.34 gram).
SMC Global's Rajesh Jain said gold prices are likely to remain on the higher side as the weak dollar will pushed up the euro. Strong euro will support gold as the precious metal is positively correlated with euro.
Gold is likely to trade in the range of Rs 15,000-15,600 per 10 gram level and in the international market it will test USD 950-1,000 an ounce level in the coming days, Jain added.
Religare Commodities Metals and Energy's Research in-charge Somnath Dey said gold is likely to be very bullish and will trade at Rs 16,200 per 10 gram level.
"This is the second time since 1960 that the US Fed has said it will buy treasury, meaning they will inject more money which will devalue the dollar, supporting the bullish trend in gold," he reasoned.
However, Bonanza Commodity Broker's Assistant Vice President Tarun Satsangi said that the market is creating a bullion trap or false breakout for gold, which may move sideways in the range of Rs 15,100-15,700 per 10 gram the near term.
In the international market, the precious metal may move in the range of USD 920-980 an ounce level.