Gold Price Prediction: A Week of High Stakes

Gold prices are poised for a week of uncertainty, with global factors heavily influencing market sentiment. Manav Modi, Senior Analyst at Motilal Oswal Financial Services Ltd, provides a detailed outlook and strategic advice for gold investors navigating these turbulent times.

Global Events Influencing Gold Prices

Last week saw gold prices dip as safe-haven demand eased and geopolitical dynamics shifted. Despite initial rallies sparked by rumors of US tariffs on Swiss gold, the market stabilized after clarifications. The meeting between Presidents Trump and Putin in Alaska, aimed at exploring peace proposals, left markets with more questions than answers, particularly regarding sanctions relief and the feasibility of proposed deals.

Economic Indicators and Fed Watch

Softer-than-expected US CPI data has fueled dovish Fed expectations, with a high probability of a rate cut in September. However, stronger-than-expected PPI data and mixed economic indicators have added a layer of uncertainty to the gold market. Physical gold demand in Asia remains subdued amidst these high prices.

What's Next for Gold Investors?

Investors are keenly awaiting preliminary US PMI data, Fed Chair Powell’s speech, and updates from the Federal Reserve’s Jackson Hole symposium for further policy signals. The outcome of the upcoming meeting between the US and Ukrainian leaders could significantly impact gold prices, especially if progress is made towards a peace deal between Russia and Ukraine.

Disclaimer: The opinions expressed by experts are their own and do not represent the views of The Times of India.