Gold Prices Set to Soar Amid Global Economic Uncertainty

Gold prices are expected to continue their upward trajectory in the coming week, driven by macroeconomic uncertainty, escalating trade tensions, and robust central bank buying. Analysts highlight these factors as key drivers behind the precious metal's recent surge to record highs.

Key Economic Data and Fed Speeches in Focus

Traders are closely monitoring upcoming economic data releases, including GDP figures from the UK and EU, alongside US Core PPI and Core CPI data. Speeches from US Federal Reserve officials are also under scrutiny for insights into the future direction of gold prices.

Analysts Predict Further Gains

Prathamesh Mallya of Angel One notes gold's remarkable performance, with prices reaching new highs in both domestic and international markets. "The rally seems unstoppable," Mallya stated, pointing to the potential for gold to hit $3,800 per ounce internationally and Rs 1,10,000 per 10 grams on the MCX within the next three months.

Trade Tariffs and Geopolitical Risks Boost Demand

Heightened tariff tensions and geopolitical risks are prompting investors to increase their gold allocations. "Tariffs, tariffs, tariffs — it goes round and unending," Mallya remarked, emphasizing the impact of US trade policies on global markets.

Central Bank Buying and Fed Rate Cut Speculation

NS Ramaswamy of Ventura Securities highlighted the role of central bank purchases and speculation over a Federal Reserve rate cut in sustaining gold's rally. "The Fed cutting interest rates could be the missing catalyst to reignite a record-breaking rally," he said.

Outlook Remains Positive

With a combination of geopolitical uncertainty, trade tensions, and central bank demand, analysts believe gold's upward trend is likely to persist in the medium term, barring a sharp reversal in macroeconomic conditions.