Gold to hover around $1,200/oz with a downward bias for the remainder of the year: CARE Ratings

Increased buying from China and India could provide some cushion for prices

CARE Ratings in a research report has mentioned that the gold is likely to hover around the $1,200/oz range with a downward bias for the remainder of the year. As per the CARE Ratings, the metal is likely to witness a further softening in prices in the near to medium term with the US dollar expected to strengthen further on the back of better performance of the US economy and the expected US interest rate hikes. "Increased buying from China and India could provide some cushion for prices. Gold markets could also get some support from higher physical buying at lower prices and from investors who seek portfolio diversification," said Madan Sabnavis, Chief Economist, CARE Ratings.

"Nevertheless, the metal is unlikely to see a significant resurgence in demand and price in the near term", he added.

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