Gold Silver Reports — With Fed Holding Rates, Gold Rates may Rise Here — The US Federal Reserve’s decision to keep interest rates unchanged will push gold prices up in India as the metal will now become more attractive for investors, bullion traders said.
The market remains bullish on gold although the discount on the metal increased 60% in the physical market on Thursday in comparison to the first three days of the week, indicating a lower offtake by traders. Gold opened . 31,295 per 10 gm on MCX, higat ` her from Wednesday’s closing of . 31,205. Silver too opened higher ` . 47,302 kg as against Wednesat ` day’s close of ` . 47,169. But prices came under pressure during the day as rupee strengthened against the dollar. “Even if there is a rate hike in December, it has already been priced in,“ said Himanshu Gupta, chief market strategist at Karvy Commodities. “We expect the US elections to spark volatility. The safe haven play is likely to support bullion prices. Internationally, once gold prices manage to break above $1,375-1,380 per troy ounce, we can see a rally. Gold is expected to be a good bet for investors.“
Silver may touch ` . 52,000-54,000 per kg by the year end, analysts said. “The uncertainty in the market on gold price has disappeared following Fed’s decision to keep the rate unchanged. This is likely to spark interest among Indian investors,“ said Hareesh V of Geofin Comtrade. — Neal Bhai Reports