Hedgers, investors and arbitrageurs are eyeing the upcoming economic policy of US President Donald Trump before taking positions in gold.
Trading currently at $1,257 an oz in the London spot market, gold jumped by around 3 per cent over the last two weeks on stockists’ buying following a weakening of the euro.
A nearly 1.5 per cent appreciation in the rupee, however, reduced the impact on Indian consumers. Standard gold in India is trading at Rs 29,305 per 10 gm in Zaveri Bazaar.
“In the near term, we see gold hitting $1,284 an oz. Trump is set to announce his economic policy next week, which will set a direction for gold. Till then, gold will continue to find support from buyers,” said Gnanasekar Thiagarajan, director, Commtrendz Research.
April Comex Gold futures closed at $1,251.40 on Friday, up 1.47 per cent. The US Federal Reserve’s minutes released on Wednesday indicated it might raise rates again fairly soon should jobs and inflation data come in line with expectations. However, the central bank hinted its decision to raise rates could be affected by Trump’s economic policy.
One crucial support for gold is crude oil prices, which have remained elevated this year following a cap by major producer countries. Normally, crude oil and bullion move in the same direction.