The declining trend in Gold prices will remain or gold will shining again depend on the Fed’s interest rate signals. If there are indications of increases in interest rates, the price of gold as well as the Base Metals prices also will drop. If it indicate hike in interest rates then it will also important that from when the new rates will be applied. And also its a important thing that If Interest rates increased then it will be first time in America from last 10 years.
Experts say that if the Fed declare the hike in interest rates along with the time from when the new rates will be applied, then a certainly strong decline may possible in Gold price. while in global markets gold may fall more then 5 percent from its current levels. And after that domestic market will follow the same trend which will be carried from global market. From this point of view experts believe that MCX Gold could fell heavily up to 8 to 10 percent. In domestic markets, the price of Gold may come around 22500 rupees. Some other experts say that interest rates could increase after August, signs of the declining trend in the market is going to be huge. Simultaneously rupee against the dollar could fall even more, which would not be better for the domestic industry.