Gold prices are at their lowest for 3 months before the Fed’s announcement. The Indian gold market also witnessed sales on the eve of Akshaya Tritiya.
CNBC-TV18 learns that 25-28 tons of gold have been sold on Akshaya Tritiya.
In an interview with CNBC-TV18, PR Somasundaram, India Regional CEO at the World Gold Council, believes that there will be an increase in demand for gold if prices fall below Rs 50,000 per 10 grams .
“There will be an increase in demand for gold once prices soften. Prices have reached 54,000 and with the GST they have come closer to Rs 55,000 and that has really put consumers off. Now, prices are testing 50,000 and if they drop below 50,000 rupees you should see another increase in demand.
He said gold markets had priced in a 50 basis point hike from the Fed.
“Markets priced in a 50bp hike from the Fed and that’s why it fell almost close to $1850 an ounce. So if it’s going to go above $1850 an ounce, that’s definitely something to wait and watch, however, any rise above 50 basis points, you might see the markets react.
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