Gold price prediction today: Gold rate is expected to see a limited upside in the short-term, feel analysts. As global trade tensions show signs of easing with progress on US-China trade deal talks, the safe haven appeal of gold is not as strong right now. What should investors do? What is the gold price outlook for the coming days and should investors shift focus on silver? Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers shares his views and recommendations:Gold prices ended last week with marginal gains (weekly close $ 3310) despite prices soaring to above $ 3400 per oz earlier in last week in Spot as steady macro cues from US along with ease in trade tensions between US & China weighed on sentiments and limited its upside trajectory. US President Donald Trump announced that Chinese President Xi Jinping has agreed to resume the export of rare earth minerals and magnets to the United States. The statement was made aboard Air Force One, as reported by Reuters, highlighting a potential easing of trade tensions between the two economic giants. The US had also indicated it may soften certain restrictions on technology exports in exchange for the same.Modest US jobs growth in May lifted the dollar marginally last week. Nonfarm Payrolls (NFP) in the United States (US) climbed as came in stronger than the market expectation as Federal Fund Futures pointed to a larger chance that the US Federal Reserve (Fed) may keep its benchmark interest rate steady at its next two monetary policy meetings.In other news, China’s central bank expanded its gold reserves for a seventh straight month in May, furthering its bid to diversify holdings despite ongoing price fluctuations. The People’s Bank of China added 60,000 troy ounces of the metal to its reserves last month, taking the total to 73.83 million fine troy ounces, according to data released Saturday. However the same indicated a slowdown in pace of accumulation by the central bank which did not bring in any substantial hike in prices during the start of the current week.
Gold Price Outlook
Traders to closely monitor US CPI (May) and PPI (May) data as any unexpected surprise in readings could lead to indications of delayed rate hike keeping sentiments muted.Market attention also remains fixed on the London discussions, where US and Chinese officials have indicated progress in trade deal.Meanwhile Silver, witnessing a breakout to 13 year highs last week had finally started to join the rally that gold started months ago. More than 8% move seen in silver prices since last week were on account of safe haven demand, due to escalating geopolitics on the Russia-Ukraine front combined with trade uncertainties and also driven by Industrial demand.
Gold Price Weekly View: Cautious Upside (1 – 2 Weeks)
We continue to expect limited upside in Gold for a short term perspective as any spike towards $3360 – 3390 per oz in Spot (CMP $3330 per oz) still remains a selling opportunity for the yellow metal.On MCX Aug futures (CMP Rs. 97,075/10 gm) prices could trade in a broad range of Rs 98,500 – 95,000 per 10 gm for the coming week. MCX Silver is expected to remain steady as compared to Gold while may trade in a broad range of Rs 1,04,500 – 1,09,000 per kg. in July futures contract as a combined Sell gold/Buy silver strategy could remain favourable on short to medium term perspective.Also silver looks set to outperform gold in the current year as we expect silver to continue to rise in the range of $ 38.70 – 41.50 per oz in International spot markets (CMP $ 36.65 per oz) in the current year. This translates to a level of Rs 1,15,000 – 1,23,000 per kg. in the MCX futures market in 2025 providing further returns of almost 15 – 20% from current levels.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
