Picture By: Hrishikesh Bhatt
As the festive demand increases in India, the season helped gold prices stay afloat amid a firm dollar. While markets awaited for the direction on a rate hike from the US Federal Reserve.
Gold is expected to gain over the next few days on account of festival buying in India, the world’s second-largest consumer of the yellow metal. Gold is traditionally given as a gift during festivals such as Dhanteras and Diwali.
“Physical demand from Asia continues to underpin the market at present, with gold continuing to consolidate for the time being between $1,250-75,” MKS PAMP Group trader Sam Laughlin said.
“While Indian physical buying is supporting prices, the liquidation of longs last week has put some break on the upside movement and gold prices will stay within $1,260-$1,280 range for the time being,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
Spot gold was trading up 0.2% at $1,268.90 an ounce, while US gold futures were up about 0.2% at $1,269.60 per ounce.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 1.49% to 942.59 tonnes. “The markets are waiting for the FOMC meeting next week and (the US presidential) elections,” Leung added.