Gold price may hit
■
Gold
price, which has turned negative in both international and domestic markets, is likely to rebound and may touch ` 33,500 per 10 gram provided the rupee rallies back to 71, say industry experts.
Gold on Friday closed ` 31,015 per 10 grams in the domestic market, while it was at $ 1,207.70 at the international level.
“The domestic market has not seen any spectacular demand due to high price and poor returns. The strengthening of US dollar, two rate hikes by the RBI since June and the fear of another hike next month have dented investment appetite for gold,” Commtrendz Risk Management’s director Gnanasekar Thiagarajan said.
Though he said there has been no significant impact on gold WHILE PLANNING IS CRITICAL TO OUR FINANCIAL WELL- BEING, IT HAS BECOME INEVITABLE IN THE UNCERTAIN TIMES WE NOW LIVE IN. HERE, DR RAVINDRAN ANALYSES YOUR FINANCIALS AND LAYS OUT A ROADMAP FOR ACHIEVING FINANCIAL GOALS. price from the geopolitical tension in many areas, the same cannot be ruled out going forward. “We see gold price moving around $ 1,185- 1,255 per ounce with a possibility of an extension towards $ 1,275 by December- end. At the lower end, it may fall to $ 1,160. Domestic prices many rule between ` 30,250 and ` 33,500 if the rupee claws back to 71,” he said.
Financial services provider ABans Group chairman Abhishek Bansal attributed the September to mid- October rally in gold prices to the ongoing USChina trade wars and on tension arising from the US sanctions on Iran coming into effect from November 4.
But then the price began to fall on fear of the US Fed hiking interest rates again. The Fed had
( I) LONGEVITY HAS BEEN PROJECTED AT 85 YEARS; ( II) THE RETIREMENT IS PLANNED AT AGE 60; ( III) COST OF LIVING GROWS AT 8% PER ANNUM, WHILE EARNINGS ON SAVINGS AND INVESTMENTS GROW AT 10 PER CENT PER ANNUM ( III) INCOME IS ASSUMED TO BE GROWING AT 8% IN LINE WITH INFLATION.
( L. Ravindran is a certified financial planner and managing director of Wealthmax Enterprises Management Pvt Ltd. Readers can send their queries to ravindran. manipal@ gmail. com)