KOCHI: Gold prices continue to perplex experts across the globe. After a four-day losing streak, the yellow metal rose by Rs 475 to Rs 28,025 per 10 grams on Tuesday.
The rebound from an 11-month low was driven ainly due to global factors. Spot gold was up half a percent at $1,139.20 an ounce, after edging down earlier to $1,131.35. US gold futures rose 0.6 percent to $1,140.20 per ounce.
Providing clarity, B Girirajan, managing partner, Bhima Group told Express that generally, gold prices edge up during the end of the year mainly due to the year-end closing of sales.
“We cannot consider this as an upward trend. As of now, there is no solid reason for the yellow metal to move northwards. I expect that gold will remain range-bound in 2017,” he pointed out.
In the national capital, gold of 99.9 percent and 99.5 percent purity rebounded Rs475 each at Rs28,025 and Rs27,875 per 10 grams, respectively. The precious metal had lost Rs400 in the previous four days.
Geofin Comtrade Limited has attributed the spike in gold prices to buying from China. “Spot gold rose, hitting an intraday high of $1148.9 a troy ounce supported by buying from China. However, firmer dollar kept gains under check,” it stated.
At the Multi Commodity Exchange (MCX), gold for delivery in February moved up Rs 62, or 0.23 percent, to Rs 27,099 per 10 grams.
Market analysts said the rise in the precious metal at the global market mainly influenced gold prices at futures trade here. Gold prices rose in Asian trade on light buying from China, but trading was thin after the long Christmas weekend, even as a firm dollar capped the gains.
S Abdul Nazar, the treasurer of Gold Merchants Association — Kerala, is pretty confident that gold prices will stay up. “It is unlikely that the prices may fall below $1,100 since mining charges alone are $1,100. In the Indian context, even though we implemented demonetisation, the rupee is getting weaker. Gold has a good future in India.”