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As on: Mar 24, 2019 06:03 AM
Gold Boosted On WGC Outlook
11-Jan-19   18:04 Hrs IST

COMEX Gold stayed well supported today as buying stayed in place following upbeat comments from the World Gold Council (WGC). The interplay between market risk and economic growth in 2019 will drive gold demand and financial market instability, monetary policy and the US dollar and structural economic reforms would be the three key trends that will influence the price performance of the metal, noted the WGC, in a latest update. Gold’s price seesawed in 2018 as investor interest ebbed and flowed despite steady growth in most sectors of demand. Gold faced significant headwinds for most of the year. The dollar strengthened, the Fed continued to hike steadily while other central banks kept policy accommodative, and the US economy was lifted by the Trump administration’s tax cuts.

These factors fuelled positive investor sentiment which, in turn, pushed US stock prices higher, at least until the start of October. But as geopolitical and macroeconomic risks continued to increase, emerging market stocks pulled back. Eventually, developed market stocks followed, in a selloff led by US tech companies. This resulted in short-covering in gold with its price ending the year near US$1,280/oz (-1% y-o-y).

The yellow metal currently trades up half a percent at $1294 per ounce. The MCX Gold futures are currently trading at Rs 32020 per 10 grams, up 0.44% on the day after hitting a high of Rs 32076 per 10 grams.

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