Commodit TipsFinancial News

Bull Trend in Gold is not Durable: Pinnacle Experts

MCX TrendGold price has got some recovery in four month low trend. In International market Gold has got the gain of 1 dollar and reached at $ 1160 per ounce. Although Greece has given new proposal for the bailout is submitted, after which the euro returned strongly and pressure on the dollar is being witnessed. The weakness in the dollar has supported price of gold to getting up. Although gold is heading for a third straight week of decline. According to experts, the fall in gold prices is likely to see again.

Gold Likely to Fall
Pinnacle Financial Services expert said that the demand of Gold in India and China has been plummeted. This causes the downward trend in Gold prices may persist. COMEX Gold is trading around $ 1160 per ounce. On Wednesday the price had slipped to 1146.75 dollars per ounce, which is a four-month low. In domestic market MCX Gold could split to Rs 25500 as per expert suggest the MCX Gold trend.

Greece submitted The New Proposal for Bailout
Greece has submited new proposal for bailout to the Eurozone. In that proposal Greece offer to increase corporate tax from 26% to 28%. As well as the offer to removal of the VAT tax rebate plan By the end of 2016. Along with that it include the eliminate the option of early retirement. By this proposal a recovery may seen in Euro against Dollar. Euro is trading at 96.14 with a loss of 0.50% against the US Dollar.

It Also supported Gold Prices
International Monetary Fund (IMF) has once again reduced global economic growth forecast. The IMF’s previous estimate has been reduced from 3.5% to 3.3%. Although the IMF global economic growth forecast for 2016 is unchanged. The next global economic growth is expected to be 3.8%.

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