Gold prices are at 3-month lows ahead of Fed announcement. Indian gold market also witnessed selling on the eve of Akshaya Tritiya.
CNBC-TV18 learns that 25-28 tons of gold was sold on Akshaya Tritiya.
In an interview to CNBC-TV18, PR Somasundaram, Regional CEO of India at World Gold Council believes that there will be a surge in demand for gold if prices drop below Rs 50,000 per 10 gram.
“There will be a surge in demand for gold once the prices soften up. The prices hit 54,000 and with GST it went closer to Rs 55,000 and that really put off the consumers. Now the prices are testing 50,000 and if it drops below Rs 50,000 you should see another surge in demand.”
He said gold markets have factored in a 50 bps hike from Fed.
“Markets have factored in a 50 bps hike from Fed and that is why it fell almost close to USD 1850 per ounce. So whether it is going to breach USD 1850 per ounce is definitely a thing to wait and watch. However anything more than 50 bps hike, you could see the markets react.”
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