The price of gold fluctuates as rising US Treasury yields reduce its allure in the face of erratic Fed policy. Given the South Korean political unrest, the Syrian civil war, and tensions between Russia and Ukraine, the decline in the price of gold and silver is anticipated to continue to be well-supported.
RBI becomes the biggest buyer of gold reserves in 2024
Sentiment remains positive in India as RBI increased its gold holdings by 27 tonnes in October, bringing its total holdings to 77 tonnes so far this year. India’s net buying activity for the year has increased fivefold compared to 2023. RBI is the world’s largest buyer of gold in 2024; following that are the countries Turkey and Poland.
Gold supported by civil unrest in Syria and political instability in South Korea
Recent political uncertainty in South Korea and unrest in Syria are helping to support gold. Gold prices are expected to be rangebound and consolidate between $2600 (~Rs 75000) and $2200 (~Rs 77600) for the next few days with positive bias.
Gold trades volatile on dollar rebound
As manufacturing activity increases, the U.S. dollar’s strong momentum may support the gold market, which is still struggling. Gold is showing very volatile moves with support at $2600. Prices are expected to trade between $2600 (~Rs 75000) and $2200(~Rs 77600) for the next few days.
Gold expected to be rangebound amid yearend profit-booking
As gold prices have given around 30% returns this year, we will likely witness a bout of profit-booking by hedge funds and ETFs in December, which might put pressure on the prices. But amid geopolitical worries, prices will stay above $2500 (~Rs 73000).
Gold trading above Rs 76000 on Black Friday sale
Amid worries about a trade war and geopolitical uncertainties, the price of gold saw new bids on Thanksgiving Thursday and Black Friday. For the next few days, prices are expected to trade between $2600 (~Rs 75000) and $2700(~Rs 77000).
Trade war jitters and geopolitical tensions support precious metals
The US macro data dump yesterday revealed a halted rate of inflation and a relatively robust US economy. This raises the possibility that the Fed may be wary of further rate reduction and cause a slight increase in the rates on US Treasury bonds, which boosts demand for the US dollar and is seen to be hurting Gold and Silver.
Gold reverses losses to trade above $2650
The hope for a ceasefire between Israel and Hezbollah weakened gold’s appeal as a haven asset. Today’s release of the most recent FOMC minutes could provide additional guidance for gold prices and suggest that should inflation continue to be high, the Fed may halt rate reductions and maintain them at restrictive levels.
Gold slumps as risk aversion wanes
Yesterday, gold fell over $100 due to two significant unfavourable news reports. Gold is showing very volatile moves with support at $2600. Prices are expected to trade in the range of $2600 (~Rs 75000) and $2700(~Rs 77000) for the next few days.
Gold to feel exhaustion after posting strongest gains the past week
Gold and Silver saw safe-haven flows last week, and rising tensions between Russia and Ukraine caused renewed unease in the markets. I now anticipate impending buying exhaustion this week in precious metals.