Should you buy gold as US dollar index hits nine week low on de-dollarisation — explained
₹58,600 per 10 gm levels within few minutes of commodity market's opening. However, the yellow metal attracted fresh buying at lower levels and bounced back from its intraday lows and hit intraday high of ₹58,683 levels.
In international market, gold price today is oscillating around $1,930 per ounce levels. However, silver rate today opened higher and went on to hit intraday high of ₹71,510 per kg levels on MCX, logging around 0.20 per cent rise against Monday close on MCX.
In international market, silver price is around $23.25 per ounce levels, logging an intraday gain of near 0.60 per cent. Speaking on gold price outlook, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold prices are expected to bounce back from the lows as US dollar index has hit nine week lower levels of 101.27.
This weakness in the US dollar is due to the rising de-dollarisation across globe after the Russia-Ukraine war. This has put US dollar under pressure and in coming days, we may see US dollar index slipping below 100 levels once it breaches its current support placed at 100.50 levels." Anuj Gupta of IIFL Securities said that dedollarisation has begun in India, China, Russia and many other countries as these countries have started to work upon crude oil trade in terms of other than US dollar payments.
This trend is expected to pick up in near term that may impact the American currency, which is already under pressure due to lower than expected job and other economic data. On triggers that may continue to support rebound in gold prices, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, "The US jobs report for June showed that the economy added 209,000 jobs, below the consensus forecast
. Read more on livemint.com
