Bul­lion On a High

The Economic Times - - Finance & Commodities - Su­tanuka.Ghosal@ times­group.com

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.

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