Quote on Gold by Mr. Pankaj Singh, smallcase manager, Founder & Principal Researcher - SmartWealth.ai.
Below the Quote on Gold by Mr. Pankaj Singh, smallcase manager, Founder & Principal Researcher - SmartWealth.ai.
“Gold prices are caught between falling US bond yields and a strengthening Indian rupee. Over the past week, international gold (XAUUSD) rose from a low of $4,080 on October 7 to $4,213 on October 12, before correcting to around $4,150 on October 14, supported by a decline in US 10-year bond yields from 5.358% to 5.198%. However, domestic gold (XAUINR), after rising from Rs3,97,120 on October 8 to Rs4,06,393 on October 10, corrected to Rs3,94,131 by October 14. The rupee's appreciation from around Rs96.73 to Rs94.94 against the dollar, supported by RBI measures to curb dollar demand and speculative forex positioning, has offset the gains in international gold.
Going forward, gold's direction will hinge on US inflation data, Federal Reserve commentary and geopolitical developments. Stronger inflation and rising yields could weigh on global gold, while softer data or heightened geopolitical tensions may provide support. Festive demand in India and sustained Chinese buying could cushion the downside, but further rupee appreciation may cap domestic prices. The near-term outlook remains cautious, with currency movements likely to be as important as international gold prices in determining returns for Indian investors.”
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