Gold price prediction: Where are gold prices likely to head this week? What are the global cues to watch out for and what should your strategy be for gold? Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd explains:
Gold prices saw heightened volatility last week, initially surging to an all-time high of $3,500/oz on COMEX before retreating below $3,300. The rally was driven by safe-haven demand amid heightened geopolitical and economic uncertainty.Key catalysts included U.S. PresidentDonald Trump’s criticism of Federal Reserve Chair Jerome Powell and concerns over prolonged U.S.-China trade tensions. Trump warned that the U.S. economy could slow unless interest rates are cut immediately, increasing pressure on the Fed.
However, gold prices corrected sharply as Trump backed away from firing Powell and signaled optimism over potential trade negotiations with China. U.S. Treasury Secretary Scott Bessent added to the mixed signals, suggesting de-escalation but offering no clarity on timelines. Meanwhile, global sentiment was rattled by the IMF’s downgraded global growth forecast to 2.8% for 2025, with inflation expectations revised upward.
Adding to the uncertainty, President Putin hinted at peace efforts regarding Ukraine, and the White House was reportedly considering tariff cuts on Chinese imports. Despite the dip, investor attention remains focused on central bank independence, elevated inflation expectations, and uneven U.S. economic data, including mixed PMI readings and durable goods orders.
Markets now await comments from Fed officials for policy direction. Unless there are any updates from President Trump or Chinese officials regarding the trade war, this profit booking could continue.
Strategy for Gold: Sell Gold
Stop Loss: above Rs 96,500 and Target: Rs 93,500/92,800
(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)
