No gold price spike likely this Akshaya Tritiya

No gold price spike likely this Akshaya Tritiya

Kolkata: Gold prices may not rise sharply this Akshaya Tritiya despite a spike in geopolitical tensions. Bankers and analysts reckon that the market has already factored in the consequences of an US-led missile attack against Syria last Saturday itself. Gold prices are likely to remain range bound and hover around the Rs 31,000-31,500 per 10 gm-mark on April 18, when Indians celebrate Akshay Tritiya, an auspicious day to buy gold.

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Talking to ET, Sekhar Bhandari, business head for global transaction (banking and precious metals) at Kotak Mahindra Bank, said: “I feel that the current geopolitical tension will have minimal impact on gold prices. Unless it escalates in a big way, gold prices will witness a rally and will have a safe haven status. Temporarily, prices may spike for a day or two, but that may not sustain for long. Indian customers are also watching the movement of gold and are very cautious before they invest in it.”

Gold prices were little changed in Asian trade on Monday. Spot gold was down 0.1 per cent at $1,344.03 an ounce, while the US gold futures eased 0.1 per cent to $1,346.80 an ounce.

Russia responded angrily to the US-led strike against Syria, warning of unspecified consequences. “One has to see how both countries behave. In the short term, a consistent spike in gold is not expected. At least, in the next 40 days, we do not see a huge rally. In fact, today’s gold movement is an indication ………….Read More>>

Source by indiatimes..
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