Gold loses shine as US dollar strengthens

Chennai, July 6 (IANS). An analyst at Geojit Financial Services said a strengthening US dollar and marginal easing of global recession concerns mainly influenced gold prices.
Research analyst Anil R. said, “The recent fall in gold prices (5.4 per cent from its all-time high) can be attributed to a slight easing of global recession concerns and strengthening of the US dollar. Also, interest rate hike in the US This trend may continue.
According to data from the World Gold Council, Indian gold demand declined by 17 per cent in volume terms in the current financial year, mainly due to higher prices.
Anil further added, “As a result, we anticipate a softening of retail demand in the near term. It is challenging to quantify the day-to-day impact of these factors on stock prices. However, we are hopeful that with the onset of the festive season Demand will pick up in India.”
On Comex, gold prices were trading in a range on Thursday, down 0.09 per cent at $1,924 an ounce.
HDFC Securities Senior Analyst (Commodities) Saumil Gandhi said, Gold in August futures contract was trading marginally higher by 0.05 per cent at Rs 58,495 per 10 grams on MCX.
COMEX gold prices came under pressure after US Treasury yields and dollar index strengthened due to sharp comments in the minutes of the last meeting of Federal Reserve officials, Gandhi said.
“The minutes show that most policymakers agree that more tightening will be needed this year,” he said.
He said that in the domestic market, bullion was trading slightly higher as prices were taking support from weaker rupee, which has depreciated by about 0.60 per cent against the US dollar so far this week, they said.