Gold is now sustaining above the tolerable level of 1200 USD per ounce. The global spot gold prices usually range from 1200 and 1245 USD in the recent weeks. Though the price had dropped to 1211 USD initially, it has started picking up and stands at 1220 USD (recovering much of the loss).
A convention by the Organization of the Petroleum Exporting Countries (OPEC) on 29 November and the US Non-farm Payroll statistics announced the next day is expected to keep the market fluctuations high this week.
In India, the strength in the rupee manages to retain the pressure on the gold and silver futures contract on the Multi Commodity Exchange (MCX). The rupee broke over 70 against the dollar and rose by 1.5% by the end of November. The MCX-Gold dropped by .84% at the same time.
The US dollar index (97.27) was varying from 96.6 and 97.5 a week ago. The index was maintained above 96 last month. It couldn’t manage a steep jump – the main hurdle being near 97.5 at present. A sharp break above this obstacle (at least higher to 98) is the need of the hour.
A break beyond 98 can then escalate the possibility of the index targeting 98.8 and 99 in a short period. Then again, if the index cannot cross 97.5, it can remain between 96 and 97.5 for some more time. How this will impact the gold price in India in 2019 is yet to be seen.
