Mumbai: There was a tussle between the bulls and bears in the bullion markets last week and could spill over to this week as analysts are concerned about the state of the global economy, the risk of debt default and equity weakness On Wednesday gold soared one per cent to a one-year high, breaking a three-day losing streak to trade above the key $1,200-an-ounce level as Asian stock markets saw a rout and the dollar slipped.
It gave up some gains as equities steadied after gold fell during Asian trading hours on Friday after rallying overnight to a week’s high of $1,240.10 per ounce. “But the yellow metal remained well-supported on global economic uncertainty,” said Prithviraj Kothari, MD, Riddhi Siddhi Bullion.
The uncertainty on whether the US Fed might resort to negative interest rates to stimulate the economy will keep gold prices in focus. Fed chief Janet Yellen said last week it was an option that would not be taken “off the table.” “Lower or negative rates would boost demand for non-interest-paying gold.
Concerns remain that gold could correct further as some analysts say gold gained too much, too quickly,” Mr Kothari said.
