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Good news! Experts say Gold prices set to go down ahead of Akshay Tritiya

Gold prices at the WTI and at other global commodity index are expected to go down by around $25 to $28 per ounce by June 2019, say experts.

Good news! Experts say Gold prices set to go down ahead of Akshay Tritiya
Gold price correction can be good news for the Indian markets as the coming period comprises Akshay Tritiya on May 7 and a long wedding season across India. Photo: Reuters
Written By: Asit Manohar
Updated: Thu, May 02, 2019
01:15 pm
New Delhi, ZeeBiz WebDesk
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Gold prices at the WTI and other global commodity index are expected to go down by around $25 to $28 per ounce by June 2019, say experts. Currently, at WTI, the gold prices are around $1275/ounce and the experts are of the opinion that the yellow metal may show $1250/ounce by end of June. Giving the reason for the price correction in gold, commodity experts are citing a strong dollar that has gained mainly due to the slump in the European economy. In India, it is a piece of good news as people here do huge gold buying during Akshay Tritiya falling on May 7th.

Speaking on the WTI gold outlook Anuj Gupta, Deputy Vice President, Commodities and Currency at Angel Broking said, "In WTI perspective the gold prices are expected to remain bearish in next one month as the dollar has gained in last few days and the US inflation is also under control. The World Gold Council has also said that there has been a rise in gold demand by 7 per cent." He said that on yesterday Fed Chairman Jerome Powell maintained his dovish stance on interest rate hike but said that if the US inflation remains under control, they may hike the interest rate at least once this year. So, until then, the gold prices are expected to remain bearish.

"In MCX perspective, we can expect the gold price to go down up to Rs 30,000 per 10 grams," said Anuj Gupta of Angel Broking.

On how much correction we can expect at WTI gold prices Amit Sajeja, Analyst at Motilal Oswal Commodities said, "Currently WTI gold is oscillating around $1275/ounce and we are expecting around $25 to $28 correction in the gold price in WTI perspective. In next two month by June end, the WTI gold price may show $1250 to $1245 per ounce as the European economy is not doing well and is expected to remain under stress helping US dollar to gain further in the dollar index." He said that correction is gold price can be a piece of good news for the Indian markets as the coming period comprises Akshay Tritiya on May 7 and a long wedding season across India.