New Delhi: Gold prices gained slightly after the US government’s credit rating was downgraded by Fitch, says Hareesh V, Head of Commodities at Geojit Financial Services.
“Usually, economic uncertainties and dollar volatility can have significant impacts on the price and demand for gold as it is considered a safe-haven asset. The rating downgrade of the world’s largest economy tends investors to park their money in relatively safer assets like bullion,” he said.
Jateen Trivedi, VP Research Analyst at LKP Securities said gold prices have shown positive rally on safe-haven demand as Fitch downgrades the US Credit Rating, reflecting heightened concerns over the stability of global financial markets and investors seeking refuge in the timeless allure of gold.
With many crises passed from the China-US trade war, pandemic, Russia-Ukraine war and now US debt crisis, gold will be on investors top list to keep funds allocated in times of uncertainty.
Gold broadly looks likely to take support of 58000, as even if Spot gold underperforms due to dollar rise the rupee fall adds domestic Gold price to remain positive towards 60000-62000 in near term, he said.