Gold may drop as USD Soars ahead of FOMC
Last week Gold prices dropped as strength in the greenback alongside hints for more easing out of the ECB and an interest rate in China, Fueled a volatile session for bullion heading into the close of the week. Although prices may have further downside to go near-term, the broader outlook remains constructive above a key support threshold just lower. The European Central Bank rate decision last week fueled a massive sell-off in euro crosses after President Mario Draghi cited willingness to further expand easing measures as growing concerns over deteriorating conditions in emerging markets & finical market volatility continue to threaten the recovery in Europe. Just one day later, PBoC cut interest rates by 25 basis points and lowered the RRR by 50 basis points. The surprise move suggests that officials continue to see downside risks for the world’s second largest economy – a topic now mentioned by both the ECB & the Fed.
Govt likely to launch 3 gold schemes on November 5 :
The central government is planning a big-bang launch of three schemes to satisfy the need for investing in gold. The schemes are likely to be launched on November 5, a week before Diwali. A final decision on launch date and guidelines for bonds and the interest rate payable are in the final stage.
The first is a gold monetisation scheme, where consumers will be invited to offer idle gold or jewellery for deposits with banks. The Reserve Bank has issued guidelines and the government has notified it. Ketan Shroff, spokesperson of the Indian Bullion and Jewellers Association, said: “We support the GMS and will advise our clients to earn interest on gold and jewellery lying idle with them.” Another scheme being launched will be gold coins with the Ashok Chakra embossed.
The government’s Mumbai mint has already manufactured and kept ready 20,000 coins of five grammes each and 30,000 of 10g each, for distribution to banks and post offices, which will be selling these from the launch date. It is understood that gold seized by various government agencies might have been used to manufacture these. Another scheme is of gold bonds, investing cash without actually buying gold.
* GLD ETF:
Over the weekly reporting time-frame, from Tuesday October 13th to Tuesday October 20th, the price of the (N:GLD) Gold ETF, which tracks the gold spot price, rose from approximately $111.86 to $112.73, according to ETF price data of the SPDR Gold Trust ETF (GLD).For More Information : Bullion Tips, McxTrading Tips, Mcx Tips, Commodity Market Tips,Bullion Trading Tips,mcx market tips,Mcx Trading Tips,commodity tips,Commodity market tips