IGI Logo

Below the Quote on Daily Gold Commentary by Mr. Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services

‘Gold prices rose above $2,400 to an all-time high in the previous trading session, as growing tensions in the Middle East prompted investors to seek refuge in the safe-haven assets. On the last day of previous week, tensions between Israel and Iran increased with the anticipation of US intervening, supporting an up-move in previous metals pack. A reportedly imminent attack by Iran on Israel is a real and viable threat, giving no details about possible timing. Market participants are awaiting further clarity on any possible development in this geo-political situation. Amidst the sense of panic, Gold and Dollar index are moving in tandem, highlighting that markets focus currently is more on geo-political tensions and less on interest rate changes. Gold's recent surge arrived despite traders dialing back bets for an early interest rate cut from the Federal Reserve. Recent inflation and labour market data influenced market to delay the possibility of a rate cut in June, the probability dropped from 65% to 20%. It will be important to see how the geo-political situation develops and if other countries intervene, escalating the matter further. Focus today will be on EU IIP and US Retail sales data. Broader trend on COMEX could be in the range of $2330- 2375 and on domestic front prices could hover in the  range of Rs 71,500-72,500’

Above views are of the author and not of the website kindly read disclaimer