On Wednesday, Diamond prices remained flat at Rs. 3,479.4 cent. Traders continued to be cautious with US Federal Reserve monetary policy meeting results expected later today.
On the ICEX, prices of Diamond futures 1 Carat for July expiry, opened at Rs. 3, 496.85 and touched a high of Rs.3, 498 cent, low of Rs.3, 476.8 cent before settling at Rs. 3,479.4 cent.
US Federal Reserve is expected to cut interest rates on worries of global economic slowdown. Markets will closely watch the developments leading up to US Fed meeting which ends later today.
Meanwhile, the polished diamond industry has remained subdued amid liquidity concerns. 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:
Resumption of trade dialogue between United States and China ahead of G-20 summit next week, is expected to support diamond prices at Rs. 3, 459.41 to Rs. 3,474 levels. While the precious stone is expected to test resistance level of Rs. 3, 489.49 to Rs. 3, 504.53 range.
Kedia Advisory recommends selling diamonds 1 Carat- at Rs. 3,488, stop loss at 3,494, and book profits at 3,481-3475 levels.
