Mr. Kothari further stated that double impact left Gold Bulls wanting for shelter as the safe haven metal fell below USD 1,140 testing USD 1,135 on the way. ETF's further 700k ounces of outflows made a strong bearish impact. Continuous USD strength being another bigger contributor for Gold price fall.
From here on, Gold has been gripped under the bear strength and with the US economic projections improving, it is tough for Gold prices to sustain higher levels. Until there isn't a major financial catastrophic or a fiscal stimulus (can't rule that out with the new US administration) or a geo-political tension, metals would remain pressured.
Support from here on is USD 1,120 and USD 1,070 and in INR 26,500 to INR 25,000. But these low levels could attract some fresh regional specific physical buying too. With Gold monetization drive, it won't be so easy for the Indian physical buying to support the prices here on even when Indians are entering the wedding season.
Photo Caption: Mr. Prithviraj Kothari, Managing Director – RSBL