Introduction to Gold Prices
Gold prices are expected to remain stable in the coming week as investors await clarity on global trade negotiations, upcoming US macroeconomic data, and signals from the Federal Reserve. Analysts believe that the prices will be range-bound due to the lack of fresh triggers and the recovery of the US Dollar.
Factors Affecting Gold Prices
Several factors will influence gold prices in the week ahead. These include the outcome of trade negotiations, Fed official speeches, US macro data, and the European Central Bank’s interest rate decision. Pranav Mer, Vice President of EBG – Commodity & Currency Research at JM Financial Services, stated that the focus will remain on trade negotiations between the US and its trading partners, such as India and China.
Impact of Trade Negotiations
With the August 1 deadline approaching, uncertainty surrounding trade talks is likely to support gold’s safe-haven demand. Additionally, domestic festive demand from August to October is expected to further aid prices. Last week, precious metal futures for August delivery rose Rs 200 or 0.2 per cent on the Multi Commodity Exchange.
Market Trends
Prathamesh Mallya, DVP-Research at Angel One, noted that gold has rallied by about 2 per cent over the past 10 days in overseas markets, moving to around USD 3,350 per ounce. The positive momentum in gold has been driven by the US President’s tariff actions on BRICS nations and possible duties on the EU, increasing investor demand for safe-haven assets.
Expert Analysis
Jateen Trivedi, Analyst at LKP Securities, said that the US Dollar’s strength last week kept gains in gold limited, and rupee weakness is likely to cushion downside pressure in domestic markets. Overall, gold is likely to remain volatile in the near term. NS Ramaswamy, Head of Commodity & CRM at Ventura, believes that if the proper catalysts materialize, gold could gain another 4-8 per cent in the second half after a strong 26 per cent rise in the first half of 2025.
Silver Market Trends
Last week, silver futures for September delivery hit a record high of Rs 1,15,136 per kilogram on the MCX. Sandip Raichura, CEO of Retail Broking and Distribution & Director, PL Capital – Prabhudas Lilladher, stated that silver is maturing from the ‘poor man’s gold’ to a strategic metal for smart investors. With supply deficits in the world deepening and demand from EVs, solar, and electronics increasing, fundamentals are in place for a major rally.
Conclusion
In conclusion, gold prices are expected to remain range-bound in the coming week due to various global economic factors. The outcome of trade negotiations, Fed official speeches, and US macro data will influence gold prices. Additionally, the silver market is expected to experience a major rally due to deepening supply deficits and increasing demand. As the global economic landscape continues to evolve, it is essential to stay informed about the latest trends and factors affecting gold and silver prices.
