‘Gold price may slide down to Rs.23,500 per 10 grams’

Chennai: Prices of gold may slide down further to around Rs.23,500-Rs.24,000-23,500 per 10 grams considering the current rupee-dollar conversion, said analysts.

In the Indian market, gold could fall in the range of Rs.23,500-Rs.24,000 considering the current rupee-dollar conversion rate, said Ravindra Rao, head, commodity research, AnandRathi Commodities Ltd.

“Today the gold prices (22 carat) was at Rs.2,385 per gram. We expect the prices to be stablise at that,” N. Anantha Padmanabhan, managing director of NAC Jewellers, told IANS here.

According to Rao, gold fell to its lowest since 2010 as a strong US dollar and a temporary end to the Greece debt crisis weighed on the bullion.

The US dollar has proved to be the best performer against the major basket of currencies as the receding concerns over Greece and Federal Reserve Chair Janet Yellen’s strong intentions of a probable rate hike this year prompted investors to keep their focus on the safer currency, the greenback.

Rao also said the nuclear agreement between Iran and the P5+1 reached in Vienna also played a factor. Under the agreement, restrictions imposed by the United States, the European Union and the United Nations are to be lifted in exchange for curbs on Iran’s nuclear programme.

“The safe-haven status that has been built up in gold due to the financial and political crises has faded now and money has already started flowing into riskier assets such as equities,” he said.

Indian gold imports in June 2015 have dipped by almost 37 percent cent, to $1.96 billion.

Imports of the precious metal were $3.12 billion in the same month of 2014. In May this year, imports were $2.42 billion.

Aside from the weak fundamental picture, technicals also point towards bearishness in the metal, Rao said.