Gold Prices Expected to Maintain Positive Momentum Amid Global Trends
• Gold prices are predicted to trade with a positive bias in the short term, according to market analysts. Spot gold has been on an upward trend, closing 0.70% higher last week and starting this week with a 1% gain, trading at $4,421 as of August 17,
• The reduced likelihood of US Federal Reserve rate hikes, coupled with geopolitical tensions such as the US-Iran ceasefire and economic sanctions, are contributing to the bullish sentiment. Additionally, soft US economic data and range-bound crude oil prices are expected to support gold prices in the near term.
Impact & Risks
The positive momentum in gold prices could benefit investors and traders looking for safe-haven assets amid global uncertainties. However, the geopolitical situation, particularly in the Middle East, poses risks that could lead to market volatility. Consumers planning to purchase gold may face higher prices, impacting demand during the upcoming festive season in India.
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