Gold Market Outlook: A Week of Strength Ahead

Analysts predict that gold prices will maintain their firm stance in the coming week, buoyed by global risk aversion, a weakening US dollar, and pivotal trade developments. Key US economic indicators, including CPI and retail sales, are anticipated to provide further direction for bullion prices.

Investor Focus and Market Dynamics

Jateen Trivedi of LKP Securities highlights the importance of gold staying above Rs 97,000 per 10 grams on the MCX for its strength to continue. "The combination of trade tariff concerns and a soft dollar index is steering investors towards safe-haven assets like gold," Trivedi notes, also pointing out the supportive role of a weak rupee.

Recent Performance and Future Projections

Gold futures saw a notable rise last week, with August delivery increasing by 0.86% on the MCX. Hareesh V from Geojit Investments observes that while initial weak demand was seen due to eased geopolitical tensions and strong US job data, prices rebounded following new US tariffs, reigniting trade war fears.

Prathamesh Mallya of Angel One reports a 3% surge in gold prices on the MCX over a short period, attributing the rise to aggressive US tariff policies. With the August 1 tariff deadline looming, gold's appeal as a safe haven is expected to grow, potentially reaching $3,500 per ounce and Rs 1,00,000 per 10 grams.

Geopolitical Factors and Gold's Safe-Haven Status

N S Ramaswamy of Ventura points out that gold's resistance level of $3,360 has been tested, with a breakthrough possibly leading to further gains. Ongoing geopolitical tensions, including potential US sanctions and additional tariffs, are likely to sustain gold's attractiveness to investors seeking stability.