On Thursday, Diamond prices closed flat at Rs. 3,488.35 cent from the previous close after the US Federal Reserve decided to keep policy rates unchanged.
On the ICEX, prices of Diamond futures 1 Carat for July expiry, opened at Rs. 3, 480.2 and touched a high of Rs.3, 493.1 cent, low of Rs.3, 478.2 cent before settling at Rs. 3,488.35 cent.
US Federal Reserve was expected to cut interest rates amid concerns over global economic slowdown. However, the Fed has indicated for rate cut in July.
Meanwhile, geo-political tension, particularly, US-China trade war, has kept diamond traders on edge with fewer foreign buyers in the market.
However, demand for top quality diamonds are expected to pick up in certain pockets.
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. 3,485, stop loss at 3,493, and book profits at 3,477-3470 levels.
