Gold Price Outlook: The yellow metal ended higher for the third week in a row on MCX following an easing in the US Dollar index. The precious metal remained under pressure at the start of the week, with prices falling to two-week lows as the US Treasury yield moved on speculation of further rate hikes to tame inflation. Therefore, those who wish to invest in gold or have positions in gold are advised to be cautious about the upcoming gold prices such as European first GDP data, ECB meeting, US inflation data etc. There are triggers that can dictate. Gold price in near future.
Here we list the top 5 triggers for gold price In the near term:
1]ECB meeting: “On the macro front, we have the ECB meeting, which will be headlined after the latest data, marked by concerns about inflation in the eurozone, has risen to an all-time high on record due to rising energy costs. Australia Russia will also remain in focus from central bank meetings and in the coming week. Any change in the apathetic stance of policy makers could be a negative factor for the dollar index, which could be in favor of gold prices.” Sugandha Sachdeva, Vice President – Commodity & Currency Research, Religare Broking Limited said.
2]First quarter GDP figures for Europe and Japan: In the economic calendar, Japan and Europe will release their first quarter GDP reports, which will be watched eagerly to assess the global economic outlook. Disappointing figures may boost the demand for gold.
3]US Inflation Data: Sugandha Sachdeva, Religare Broking said, “At the end of the week, investors will keep an eye on the inflation data from the US and this will be a major trigger for gold prices in the near future.
4]RBI MPC Meeting: On the domestic front, the RBI monetary policy decision to be released early in the week may determine the direction of the Indian rupee and will also be an important variable for gold prices in the domestic market.
5]Dollar Index: The dollar index has reversed some losses this weekend and remains above the 101 level. Any further weakness could lead to sharp gains in the US dollar and such a development would be a good news for a rally in gold prices.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.