GOLD PRICES FORECAST: 'CAUGHT BETWEEN RISING YIELDS, GEOPOLITICAL TENSIONS...' - WHAT LIES AHEAD FOR YELLOW METAL? DECODED | LATEST CITY WISE RATES
Gold prices forecast: Gold prices stayed steady on Tuesday, with ongoing tensions in the Middle East keeping demand for safe-haven assets intact, despite expectations of fewer US rate cuts. Gold June futures on the MCX traded at 72,999, slightly down by Rs 30 or 0.04 per cent. Earlier on Friday, gold hit a record high of $2,431.29.
Spot gold was almost steady at $2385, though attempt to take out resistance at $2400 proved to be abortive on the Federal Reserve Chair Powell's hawkish views. Powell, in a fireside chat about economic trends in North America at the Wilson Center’s Washington Forum in Washington, DC, said that the US economy has performed quite strongly and recent data show lack of progress on inflation. He added that the if inflation does not come down, the Fed can hold rates as long as required.
Gold Rates City-wise Today (24K)
Delhi: Rs 74,280 per 10 grams
Mumbai: Rs 74,130 per 10 grams
Kolkata: Rs 74,130 per 10 grams
Chennai: Rs 74,950 per 10 grams
Bangalore: Rs 74,130 per 10 grams
The US yields jumped to fresh 2024 highs despite weaker than expected US housing data as odds of multiple rate cuts diminish. The ten-year US yields surged 1.21 per cent to close at 4.67 per cent. Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas believes that the yields may test the resistance at 4.75 per cent in near term, which will be negative for the metal.
Meanwhile, Israel convened third War Cabinet meeting to decide on its course of action against Iran. The US Treasury Secretary Ms Yellen said that fresh round of sanctions will be imposed on Iran following attack on Israel.
"Gold is caught between rising yields and geopolitical tensions, which will keep the metal volatile, though lack of fresh escalation for the time being will put a downward pressure on the yellow metal. It is to be noted that miners are not following gold higher," said Singh.
According to Singh, the support for the yellow metal is at $2319/$2300/$2265, while the resistance is at $2400/$2450.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said that the Gold traded strongly as global markets reacted negatively to Israel's statement regarding Iran's drone attack retaliation, leading to increased safe-haven buying in gold prices.
Looking ahead, Trivedi belives that the sentiment remains bullish for gold as long as geopolitical tensions persist and escalate.
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(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
2024-04-17T09:31:17Z dg43tfdfdgfd