Gold Eyes Retail Demand In India, Record High US Equities Cap Upside

Published on Mar 15, 2021 12:56

COMEX Gold futures hit around one week high last week amid supportive global equities and lack of fresh buying support. The metal eased thereafter though. The DOW scaled up all-time highs after the Senate approved the $1.9 trillion stimulus relief package. This rally in US equities is capping gains in Gold. Before the latest recovery, the metal had tested around ten month low of $1680 per ounce as the US dollar index extended its winning streak amid continued Covid-19 vaccinations and supportive economic cues. Local demand scenario will be in focus now as retail prices have shaved off nearly 20% from its all-time high near Rs 55K. The broad undertone for local consumer sentiments remained firm on economic revival. The Organisation for Economic Co-operation and Development (OECD) on Tuesday forecast India`s GDP grow at 12.6% in FY22, the highest among G20 countries. The recovery in activity continued in the fourth (December) quarter of 2020, despite new virus outbreaks in many economies and tighter containment measures.