Gold investors scan Fed for cues
₹58,952 per 10 grams, and have risen by 8% so far in 2023. In comparison, international gold prices have risen by 5.56%.
Since India imports most of its gold requirements, domestic gold prices have got support from a weaker Indian rupee. “Gold prices are likely to remain stuck in a range.
Apart from the worries that the US Fed may raise interest rates in November, the weakness in the Euro Zone and China is also keeping a check on gold prices. In the near term, Indian gold prices are likely to be in the range of ₹58,000-60,000 per 10 grams," said Ravindra Rao, head commodity research at Kotak Securities Ltd.
From a long-term perspective, gold buying by global central banks and a move towards de-dollarisation could aid gold prices. However, geopolitics and a U-turn by the Fed on rates are the near-term catalysts.
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