In 2021, prices of the precious metal have been trading between Rs47,000 and 49,000 mark per 10 grams.
However, gold prices had seen a surge during 2019 52 per cent and 25 per cent in 2020.
According to Motilal Oswal Financial Services note, bullion have been in a consolidation mode from last Diwali to this Diwali, and in the past few months have witnessed some choppiness amidst volatility in US Dollar and bond yields.
Nevertheless, during the first half of the year, better than expected economic data and hawkish outlook from the US Federal Reserve have kept most market participants on the edge.
On the other hand, the second half has witnessed weaker data set and change in US Fed’s approach “which could get the gold bulls excited once again”.
