why gold prices falling in india

why gold prices falling in india
Gold was little changed as the dollar pared gains on Wednesday, after bullion inched down to the lowest in more than three months following the previous day’s sharp sell-off and a technical break well below the key $1,300-an-ounce level.
Spot silver and platinum prices also extended losses to the lowest since late June.
Spot gold XAU= was down 0.05 percent at $1,267.12 an ounce by 2:13 p.m. EDT (1813 GMT), after falling to $1,261.59, the lowest since June 24, when the market reacted to Britain’s shock vote to leave the European Union. This followed Tuesday’s 3.3 percent fall, its biggest daily loss in three years.
Gold prices slumped as strong U.S. data and hawkish U.S. Fed comments spurred expectations for a December Fed rate hike,” said UBS Wealth Management Research in a report, adding that it has lowered its three-month estimate to $1,225 to $1,375 from $1,275 to $1,425.
Gold is being largely misunderstood and we should recognize how mispriced it is, according to Diego Parrilla, managing director at investment firm Old Mutual Global Investors.
We are creating the biggest bubble in duration (with the debt markets) that we’ve probably seen in financial history”, he warned as he described gold as an “anti-bubble”.
Gold was trading down again in Thursday’s session with the precious metal tracking lows not seen since late June. This as investors await U.S. non-farm payrolls data on Friday for the latest gauge on U.S. economic activity and its effect on the market’s perceived likelihood of a Federal Reserve rate hike in December.
“We lower our three-month trading range by $50/oz because a December hike is still not fully priced, and a solid U.S. payrolls number on 7 October could prompt further profit-taking by a similar magnitude.”
U.S. gold GCcv1 futures for December delivery settled down 0.1 percent at $1,268.60.
The Bank of England, which signaled a few weeks ago that a fresh interest rate cut was likely next month, has been put on the spot by signs that Britain’s economy has weathered the Initial shock of the Brexit vote better than expected.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund fell 0.03 percent to 947.63 tons on Wednesday.

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