Gold prices are expected to remain higher by 3.2 per cent this year on account of strong demand and an extended pause in interest rate hikes by the US Federal Reserve.
Gold prices are expected to remain higher by 3.2 per cent this year on account of strong demand and an extended pause in interest rate hikes by the US Federal Reserve, World Bank Commodity Outlook for April 2019 said. The yellow metal rates surged in the first quarter by 6.1 per cent after hitting a downward path in September last year. The rise may be attributed to the support offered by robust demand and decline in the real interest rates, the report said.
“Gold prices, after reaching a recent trough in September 2018, increased 6.1% in the first quarter. Prices have been supported by strong demand and a fall in long-term real interest rates”, the World Bank Commodity Outlook added.
The share of gold holdings have been increased by the central banks of the emerging markets such as China, India, Russia and Turkey so as to diversify their asset base, the World Bank report said. The investors have increased their net long positions in the gold-backed exchange traded funds, it added.
Meanwhile, on Wednesday, prices of gold metal fell by Rs 50 to Rs 32,720 per 10 gram in Delhi on weak demand from jewellers, news agency reported citing data by All India Sarafa Association.
The fall in gold prices may be attributed to easing demand from local jewellers and retailers in the domestic market, traders told news agency PTI.
The gold of 99.9 per cent and 99.5 per cent purity fell Rs 50 to Rs 32,720 and Rs 32,550 per 10 gram, respectively. The global spot gold prices were trading slightly higher at $1,274.20 an ounce, while silver was trading up at $14.93 an ounce in New York.