By Dr. Renisha Chainani, Head- Research, Augmont – Gold for all

The gold price has risen beyond $2440 (~ Rs 68500) this week as the US dollar lowers and US Treasury bond rates fall due to dovish Fed predictions and risk-on sentiment. According to the CME Group’s Fed Watch Tool, markets are fully priced for a Fed rate cut in September. Another cut is still on the table for December.

Furthermore, over the weekend, renewed tensions in the Middle East triggered a flight to safety in the gold price, increasing purchasing interest in the yellow metal. Rising tensions have the potential to spark an all-out war between Israel and Hezbollah, prompting investors to seek protection in gold.

This week, investors will take cues from the Bank of Japan’s decision on Wednesday, followed by the Bank of England’s meeting on Thursday and key US macroeconomic announcements. Traders also prefer to await the result of the FOMC’s two-day meeting on Wednesday. The upcoming US macro data, such as the Nonfarm Payrolls report, will boost the precious metal market.

Gold Weekly chart

Last week’s low of $2350 (~Rs 67400) will act as a short-term base for prices, which is expected to hold strong support. At the same time, $2450 (~Rs 69000) and $2475 (~ Rs 69500) are expected to be the next resistance.

Silver Weekly chart

Silver rally which started from Rs 68000 to Rs 96000 in 2024, has almost retraced 50% to around Rs 82000. Silver prices seem to have formed a base in the short-term and a rebound is expected from here with the next resistance of Rs 85500.

 

 

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