On Friday, Diamond prices remained steady at Rs. 3,478.7 cent after the US Federal Reserve hinted at cutting interest rate next month. On the ICEX, prices of Diamond futures 1 Carat for July expiry, opened at
Rs. 3, 479.2 and touched a high of Rs.3, 485.4 cent, low of Rs.3, 468.3 cent before settling at Rs. 3,478.7 cent. US Federal Reserve is expected to cut interest rates, in July, amid concerns over global economic slowdown.
Muted polished diamond production and geo-political tension, particularly, US-China trade war, has kept diamond traders on edge with many foreign buyers maintain a cautious stand.
However, demand for top quality diamonds are expected to pick up in certain pockets soon.
Outlook:
Status quo on interest rates and resumption of trade dialogue between United States and China ahead of G-20 summit next week, is expected to support diamond prices.
Kedia Advisory recommends selling diamonds 1 Carat- at Rs. 3,493, stop loss at Rs 3,500, and book profits at Rs. 3,484-3476 levels.
