Bullion may turn bullish

Hyderabad : Following the encouraging corporate results and significant decline in the unemployment in the US, the Federal Reserve may decide on interest rate cut in the current week is likely to see the upward revision.

Considering this possibility, the markets remained subdued in the US as well as in Europe and Asia. Global bullion market remained moderate as the fund operators preferred to wait and watch until the upward Fed-rate revision. Therefore, gold ruled at the lower levels during the week ended Saturday.

The domestic gold, silver and jewellery market too, moved in tandem with the global currents. Besides, last week was considered to be an inauspicious due to Holashtak, a period of eight days before Holi festival, which severally impacted the demand. Now that the Holi festival is gone and the religious embargo is lifted, the market is expected to be active as before. In fact, taking advantage of the lower prices the small household buyers are likely to cash on the opportunity which will turn the sentiment bullish.

During the last week, both gold and silver recorded a decline. While standard gold (24 carats) closed at Rs.28,950 (per 10 gms) after closing at Rs.29,650 in the previous week, making a
decline of Rs.700, ornamental gold declined by Rs.680 and was quoted in the range of Rs.28,270-28,370 on the closing day of the week. Silver (0.999) too moved down from Rs.43,300 (per kg) to Rs.41,100 representing a decline of Rs.2,200 during the same period.

By:Dr HC Upadhyay