“Gold is currently in a consolidation phase, which is encouraging bargain hunters and long-term investors to step in and take advantage of low prices as gold may soon reverse direction decisively and recover”, said Chirag Mehta - Senior Fund Manager - Alternative Investments, Quantum AMC.
Both Fed Chair Powell and US Treasury Secretary Yellen have shared their optimism about economic growth this year, hurting gold. Nonetheless, prices are still supported as the Federal Reserve has repeatedly assured markets
of no change in its accommodative monetary policy stance any time soon, Mehta added.
The spot rupee ended 1.84 per cent lower against the dollar for the week. Gold ETF holdings continued outflow as holdings at SPDR Gold Shares fell to 1026 tonnes during the week, down from the previous week’s 1033 tonnes.
Gold is the biggest under-performer for the first three months of 2021 vs the other asset classes. According to Axis Securities, the investors are now betting higher on riskier assets like equity. Sentiments are improving further with increasing optimism driven by vaccine development and faster than expected economic recovery.
Based on these fundamental pressures, gold is the biggest under-performer for the first three months of 2021 vs. the other asset classes. Gold prices
are down by 11 per cent in Rs, and 10 per cent in $ in the last three months.
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