Gold prices, which took a beating last week, are likely to remain stable at the current level and move in the range of Rs 25,500-26,500 per 10 grams in the near-term waiting for some trigger to take direction, experts have said.
“In the current scenario, gold is bearish. The prices of the yellow metal has already taken a beating last week and is likely to remain range bound in the near term.
“The precious metal is waiting for some trigger to take either upward or downward direction,” Angel Broking Associate Director — Commodities and Currencies — Naveen Mathur told PTI.
At present, the market is bearish for the entire commodities segment as there is not any news that will trigger prices to catch up on the higher level, he said.
The precious metal is likely to rule in the range of Rs 25,500-26,500 per 10 grams in the domestic market and $ 1,340-1,410 an ounce (31.1 grams) internationally till the market gets some direction, he said.
Gold closed on Saturday at Rs 25,800 in the domestic market, while globally it rules at $ 1,380.
Echoing a similar view, Commtrendz Research Director Gnanasekar Thiagarajan said gold is likely to remain in this zone for some time unless the US dollar gains strength and there are some geopolitical news to boost the yellow metal.
“Gold has reached closer to the bottom as the market overreacted to fear over Cyprus and other countries planning to sell the precious metal. Going ahead it may shed a little, but mostly it will firm up,” he added.
Thiagarajan said gold is likely to rule at Rs 25,500 in the lower range. However, he expected it to hit Rs 28,000 in the upper range and in the international market it is likely to be at $ 1,275 in the lower range and at $ 1,500 in the upper range.
Trade body Bombay Bullion Association President Mohit Khamboj also said the prices would continue to be at the Rs 26,200 range in the coming week as well.
“We expect gold to rule Rs 26,200 range in the coming week as we expect the Customs Department to clear about 4.8 tonnes laying with it. This will increase the supply holding gold at its current level,” he said.
As gold prices tumbled to a 15-month low at the beginning of last week, retailers witnessed a surge in demand expecting up to 50 per cent spike in sales volume in this marriage season.
“Over the weekend, demand has picked up and there is surge in footfalls. As such, demand for jewellery has been up since Holi due to the upcoming wedding season. However, the recent plunge in prices have added to the momentum,” Vice-Chairman of the Mumbai Jewellers Association Kumar Jain said.