'US rate hike will lead to drop in gold prices globally'
The Dollar Business Bureau In the event of a US rate hike, global gold prices could drop and range between $900/oz to $1,050/oz and the domestic price of gold may decline and range between Rs 20,500/10gm – Rs 24,000/10gm from the current levels of Rs 27,000/10gm, said a rating agency report. However, if the US continues to delay the interest rate hike, while major economies such as Japan and the eurozone continue with their unconventional monetary policy (UMP), the price of gold could creep up and range from $1,300/oz to $1,350/oz in FY16, said India Ratings and Research (Ind-Ra). Correspondingly, domestic prices could also increase from current levels and trade in the range of Rs 29,500/10gm-Rs 30,500/10 gm. If major global ...
