Restrictions may slow fresh FoF inflows, but investors can still buy gold ETFs through demat accounts
Praveen Singh of Mirae Asset Sharekhan has said that spot gold is facing tremendous selling pressure on rate hike concerns as inflation continues to run hot. It is advisable to sell into rallies.
Fresh lump-sum investments, new SIP registrations and SIP step-ups in these FoFs have been suspended, while existing SIPs will continue as usual.
Barring P N Gadgil Jewellers, all the jewellery stocks in the comparison have gained year-to-date (YTD), with Tribhovandas Bhimji Zaveri (TBZ) emerging as the top performer
Gold ETF inflows rose to about ₹4,500 crore, among the highest in recent times, which reflects a steady, allocation-led approach to commodities amid global uncertainty.
A break below $4,100 would expose further downside toward the $3,960 to $4,000 zone. Until that turn materialises, near-term price action is likely to remain driven by the rate market.
Gold falls ₹1,400 to ₹1.486 lakh per 10g in Delhi as weak local demand and a stronger US dollar weigh on prices
Praveen Singh of Mirae Asset Sharekhan said that Hormuz optimism can keep gold supported in the very short term. Upside is likely to be limited to $4330 unless more clarity emerges on US-Iran talks.
Gold may rise to test the resistance zone of $4520-$4535. However, oil prices rising further will pose a downside risk to this possibility.
Gold rebounds after three days of losses as lower oil prices ease inflation concerns and Treasury yields retreat
In August, Treasury more than doubled its bond repurchase operations from $2 billion to at least $4 billion per operation
North American demand, according to the report, was relatively modest early in the month before accelerating sharply during the week of 17 August when funds added roughly $4 billion.
The CME FedWatch tool signals that market participants are pricing in a 58 per cent chance of a hike, as against 45 per cent a month ago.
Global gold ETFs recorded 23.5 tonnes of inflows in July, reversing two straight months of outflows.
Mirae Asset expects gold to find good support in the dips. After a brief consolidation, it is expected to test resistance at $4,500. Support is at $4,300/$4,200-$4,220.
Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said elevated expectations of a Fed rate hike are bearish for the metal, but the downside is expected to remain limited
Already in the bear territory after receding 27% from its record high level, analysts foresee further decline in gold prices of up to 16% to $3400-3500 levels.
A firmer dollar, rate hikes by central banks, ETF outflows, and elevated yields are likely to keep the yellow metal under pressure. China's demand is not too strong either
In the international market, Gold fell on Wednesday, as oil prices rose on renewed hostilities between the US and Iran, fuelling concerns about inflation and interest rate hikes.
Gold ETF flows remain uninspiring, as investors continue to be deterred by elevated volatility and the prospect of higher interest rates