The big global cue may be coming from the US dollar which is weakening. Gold prices inched lower on Tuesday after hitting a seven-week high in the previous session, as a rebound in U.S. Treasury yields eclipsed support from a weaker dollar, according to a Reuters report.
A weaker dollar means more flows into emerging market currencies, it means the price for commodities, which are priced in dollars, goes up and it’s positive for commodities. So these are the areas to focus on from a stock market point of view and the direct thing to look at is what happens to commodity/metal space as the dollar continues to weaken and accelerate its decline from here.
Watch the accompanying video of CNBC-TV18’s Prashant Nair for more details.