Gold prices may pick up soon: Experts
Gold prices continue their downslide in the Indian futures market in tune with the global trend.delhi Updated: Aug 17, 2007 22:44 IST
Gold prices continue their downslide in the Indian futures market in tune with the global trend even as analysts are optimistic of a rebound soon.
The actively traded October contract of gold at leading commodity exchange MCX fell by 0.11 per cent to Rs 8,823 per 10 gram in the first session on Friday from previous close of Rs 8,833.
"We see the sentiment is weak currently because of slump in the equity market and other factors. However, much downslide is not expected and investment in gold is likely to pick up in the next two days," Karvy Comtrade analyst Mithun Maity said.
Even if the fall continues, it will not go below Rs 8,700 level, he added.
On the other hand, gold expert Rajesh Khosla of Metlloy Trading Services said the fall in Indian gold prices had no relation with the equity market, adding that unlike other commodities the demand-supply position did not impact gold prices.
"Gold prices do not move on demand-supply position. The price movement of the yellow metal is influenced by other factors such as crude oil price, dollar rate, global liquidity and political uncertainties," Khosla said.
The current slump in gold prices internationally is due to a global crisis in liquidity. Investors are liquidating long positions due to the US sub-prime factor.
"It is much too early to predict when the gold prices will rebound," he said, adding the domestic demand, which traders expect will go up because of festival season, is not going to factor the prices.