Gold prices saw a rough ride and dropped to a 10-month low in worldwide markets during the week, just to regain some lost ground towards the end of the week. The Fed’s tightening cycle amid lofty inflation lessons and the strong instinct in the dollar index towards fresh 20-year highs oversaw a sheer decline in gold prices. On Multi Commodity Exchange (MCX) gold price dropped from ₹51,950 to ₹50m810 per 10 gm level, logging a 2.20 per cent loss during the week gone by.
According to experts, gold investors yearned for the safe-haven dollar to gold and breached the strong resistance of 105.80, to march higher towards the 107.78 mark amid the non-stop conversation around the rate hikes by the key
central banks. They announced that aspects like the dollar index, US inflation data, US Fed’s speech, etc. are anticipated to proceed to dictate the gold price trend in the near term.
‘The CPI rate rose by 1.0 per cent from April, seizing the headline inflation to a new 40-year high of 8.6 per cent. The market goal was around 8.3 per cent, with a monthly gain of only 0.7 per cent. This could pave the way for contentious rate hikes by the US Fed in the future’ said Pritam Patnaik who is the Head of Commodities HNI and NRI Acquisitions at Axis Securities
“The US inflation data for June 2022 is foreseen next week and will inspire the total investment class including gold as well. Dissatisfying data is anticipated to spur profit-booking in the US dollar overseeing a quick surge in gold and additional aids across the world. So, one desires to protect an eye on approaching US inflation data,” told Anuj Gupta, Vice President — Research at IIFL Securities.
American central bank officials’ speeches are predicted this week. There is a rumour that Fed may tone down its hawkish position on interest rate hikes as prior hikes have declined to contain inflation. So, the speech is vital as it will provide a reminder about what’s coming out from the next US Fed meeting,” told Anuj Gupta of IIFL Securities.
The rupee nosedived to a record low in a new session as the dollar index shot up to its two decades increase last week. Indian dollar reserves drove down in the week ended 1st July 2022. So, the action of the Indian National Rupee (INR) against the US dollar (USD) will one of the major domestic spurs for the valuable yellow metal price.
Follow and connect with us on Facebook, LinkedIn & Twitter.
