If rupee continues to rule at the current level, Gold prices
may decline further to around Rs 24,500 per 10 grams by December.
Gold prices is expected to remain bearish and if the rupee
continues to rule at current level the yellow metal may touch Rs 24,500 level
by December. Gold is expected to consolidate in a week or two, then continue to
decline further from mid or end of December, said by Oswal.
MCX gold was at Rs 26,143 per 10 grams on Saturday while in
the international market it was at USD 1,173.30 an ounce.
Narne said that the major fundamental behind the bearishness
of gold is the improving US economy.
The better than expected economic condition in the US is
likely to lead to rise in interest rates, which will further strengthen the US
dollar that will put more pressure on gold," he said.
In the international market gold is expected to rule at USD
1,080-1,120 level by the end of this year, he added.
The further decline in prices may lead to production cuts,
which is likely to be positive for gold and help in firming up of prices of the
yellow metal, he said.
In the international market, gold is likely to be at USD 1,100-1,075
level by December.
The bearishness is mostly due to strengthening of US dollar,
which is leading to bullishness in the equity markets putting pressure on
commodities across the board, including gold.
Gold is expected to be around Rs 25,500 level by December,
after which it may begin to firm up on higher demand triggered by lower prices.
In the global markets gold is expected to rule at USD
1,150-1,175 an ounce by December.
