September 04, 2023 / 10:47 AM IST
Sensex Today | Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One:
After witnessing a significant bounce back from the 5-month lows, gold prices continued to build up on the momentum from the previous week, as the yellow metal registered yet another gains of 1 percent.
This surge has seen prices now at a three-week high due to a combination of factors. A weakening U.S. dollar and subdued bond yields have made gold more attractive to investors.
Federal Reserve Chair Jerome Powell’s comments on potential interest rate hikes to combat inflation have added uncertainty to the market, which kept the gains in check.
Concerns over the U.S. labor market, marked by reduced job openings and lower consumer confidence, have raised doubts about the Fed’s rate hike plans.
Investors are closely monitoring these economic indicators as gold’s appeal may increase if the Fed takes a more cautious approach to rate hikes.
In summary, gold’s recent performance is tied to a weaker dollar, subdued bond yields, and uncertainties surrounding the Fed’s rate decisions, with upcoming data releases likely to impact its future trends.
Expect gold to trade higher towards 59530 levels, a break of which could prompt the price to move higher to 59580 levels.
