Gold likely to shed extra weight

A couple of factors impacted the gold market globally during the week ended Saturday. First, the US dollar continued to be strong vis-à-vis other major currencies including the Indian Rupee. Second, the corporate sector and funds reported higher yields.

Now that Covid-19 restrictions have been eased in the US, new optimism has been generated.

Consequently the New York gold further declined and closed at $1,700 (per Ounce). While silver followed the suit and closed at $25.22(per Ounce). Platinum and palladium closed at $1,126 (per Ounce) and $2,248 (per Ounce) respectively.

With the progressive return of normalcy in the US, gold is expected to shed its extra weight in the foreseeable future and likely to stabilize at the realistic level of 1,500 (per Ounce).

Other economic parameters remained stable. Brent closed at $69.36 (per barrel) while Crude MCX oil was quoted at Rs 4,858 (per barrel).