Gold Price Outlook: Prices of the yellow metal rose to a five-week high in the past week following a softening in the dollar index and easing global inflation. The precious bullion metal ended in positive territory for the fourth consecutive week last week, posting a weekly gain of around 1.37 per cent.
According to commodity market experts, the overall outlook for gold is positive and it may go up. 53,500 levels on MCX in the short term. He said spot gold is trading at $1,760 to $1,820 an ounce and it is likely to move towards $1,850 levels in the near term. He added that gold investors need to be cautious about the dollar index, commodity prices, US retail sales data on August 17 and some more triggers for the next week.
Here we list the top 5 triggers that can direct gold price In the near term:
1]Crude Oil Price: Sugandha Sachdeva, Vice President, Commodity & Currency Research, Religare Broking said, “The week before this has been volatile and any sharp move in this will impact inflation expectations as well as gold prices.
2]Dollar Index: “The key variable to watch will be the momentum of the dollar index. After sliding to a low of around 104.63 points during the week, the greenback was seen to have grounded and staged a strong recovery towards the end of the week. If the DX moves up from 104.50 points manages to stay up, we may see some selling pressure in the precious metal,” said Sugandha Sachdeva.
3]US Retail Sales Data Release: The FOMC meeting and the release of US retail sales data on 17 August 2022 will be an important event for gold investors as it will provide insights about the US economy.
4]Rupee Vs Dollar: “After the dollar index reached a 20-year high of 109.30, it dropped below the level of 105 last week, forming a level of around 104.50. Hence, the Indian dollar (USD) against the US dollar this week Some correction is expected in the National Rupee (INR), which is positive for the yellow metal. Hence, gold investors are advised to be cautious about this domestic trigger,” said Anuj Gupta, Vice President – IIFL Securities Research said.
5]Global Economic Data: Several economic data releases are due for the coming week, with an eye on the latest readings from the Empire State Manufacturing Index, building permits, housing starts, the Philadelphia Federal Reserve Manufacturing Index, current home sales data and industrial production data. from America. UK CPI, Eurozone CPI, and GDP data will also be on the radar of market participants and will control gold prices during the coming week.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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