Gold Prices Can Go down to Rs 20500 if US Hikes Rates. Gold prices can decrease in india, gold price likely to decrease in India by 24%.
Gold Prices Can Go down to Rs 20500 if US Hikes Rates:
There is a possibility of a hike by the US Federal Reserve may be a big worry for Indian stocks and currency markets. The indian stock markets are already under pressure amid concerns about weak corporate earnings, sluggish growth. The domestic rating agency India Ratings and Research has warned about a potential crash in prices of gold if the US Fed hikes the interest rates in the United States.
Due to the hike in the US Fed, global gold prices could drop drown. The gold would range between $900 to $1,050 per Ounce. They may possibly set at around $1,000 per Ounce. India Ratings and Research said this may result in the domestic price of gold to decrease and may result in range between Rs 20,500 per 10 gm to Rs 24,000 per 10 gm.
Currently the gold prices in the india are trading around Rs 27,000 per 10 gram, and if the India Ratings prediction comes true then the prices would fall about 24 per cent and the gold Prices can go down to Rs 20500.
An increase in hike in the US will cause the dollar to strengthen against other currencies. Commodity prices may feel the heat . Commodities such as gold, priced in US dollars, will come under pressure as they will become costlier in other currencies.
Gold Prices Can Go down to Rs 20500 in India:
If the US Fed gets hiked up then the money will move away from safe assets such as gold to interest-bearing assets such as bonds if rates go up in the US this may result in adding pressure on gold.
Interest rates in the US have not gone up for nearly a decade as the Fed kept rates near zero since December 2008 to kickstart the world’s biggest economy. A hike in interest rates in the US could create volatility in stock markets and the rupee.
For this reason Bank of America termed the Fed hike as an even risk in a report last month. It has advised investors to closely track Fed-related developments.
In its reported in the India Ratings and Research that if the US continues to delay the interest rate hike in the Federal reserve, then the gold prices can even rise from current price of Rs. 27500 per 10 gram to Rs 30,500 per 10 gram.