Bullion On a High
Kolkata: Indian jewellers in Dubai expect a surge in bullion buying from the seven nations targeted in Trump’s travel restriction order. Citizens from these nations would rather invest in gold than in dollars.
“There will be a clear bifurcation of countries willing to hold dollars or gold. Many, who do not believe in Trump, will hold gold making the yellow metal dearer. We feel that China and other Islamic nations will increase their exposure to gold. The next resistance level for gold is $1,234 per troy ounce,” said Surendra Mehta, national secretary, India Bullion and Jewellers Association (IBJA).
Rajiv Popley, director, Popley & Sons, that has operations in Dubai, said: “We can expect an increaseinbullionbuyingfrom theendof thisweek.If thathappens,thengoldpriceswillshoot up. However, we have to wait to see how things pan out in the nextfewdays.”Aweakerdollar supported the bullion on Tuesday. “This is a week of volatility as far as gold is concerned. The FOMC meeting will begin on Feb 1 which will decide whether there will be another rate hike or not. If Fed increasesinterestrate,thenthe current northward movement
of goldmaybearrested.Evenif the rate is not hiked, we do not see an immediate big rally in gold. It may go up by $15 -$20 per ounce,” said Pramathesh Mallya, chief analyst, non agri commodities and currencies at Angel Broking.