MUMBAI (Commodity Online): India gold demand may witness revival during the upcoming festival and wedding season beginning August aided by a revival in market sentiments, according to Angel Commodities.
In recent times, gold demand fell sharply as ?Indian Rupee plummetted against the US Dollar due to a fall in capital inflows, weak domestic equities and a stronger dollar index.
?Consumption in the Indian markets for gold has witnessed slowdown in the first-half of 2012, but with improving confidence in the global markets we expect the trend in demand to reverse,? Angel Commodities said.
The Bombay Bullion Association?s President Mr. Prithviraj Kothari said that imports during the second-half of the current calendar year could be around 300 tonnes, an increase that what was recorded in the first-half of this year at 250 tonnes.
In the current scneario, safehaven demand will not be a driver of gold and prices will move higher on basis of risk sentiments which are likely to be upbeat considering the central bank moves at monetary easing.
?From the short term perspective gold prices might witness correction initially owing to the ongoing?macroeconomic concerns in major economies of the world and no concrete step towards solution of the?Euro debt crisis. However, rise in the risk appetite is likely to be witnessed if central governments adopt?stimulus measures to boost the economy. This could provide support to the prices on the upside,? Angel Commodities said.
Technical Levels (1 month): Buy MCX Gold August at Rs 29000-28950, SL-28200, Target -30300?Spot Gold: Trend- Up, Support $1547/$1498 Resistance $1643/$1689
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