Perspective on Gold by Mr. Sandip Raichura, CEO - Retail Broking and Distribution, Director - PL Broking and Distribution.
Below the Perspective on Gold by Mr. Sandip Raichura, CEO - Retail Broking and Distribution, Director - PL Broking and Distribution.
“Gold prices rebounded above $3,300 an ounce as markets grappled with a U.S. lower court ruling striking down former President Donald Trump’s tariff authority—a decision that may further delay Federal Reserve rate cuts this year. This has sparked confusion again supporting gold prices – The US DXY is also holding near 99 levels thus not making it clear which way risk aversion is likely to move in the near term. In all this background, the Fed may delay rate cuts which is dollar positive and gold negative. However, the US unemployment data incrementally is not positive and there are definitive signs of a US slowdown sometime in the near future which will support gold.
As January 2024 at around $2,000 per ounce, gold is now consistently in the $3,300 price range, making up a 65% growth rise in less than 18 months. Therefore its bound to go through some corrections from time to time on its way to structurally higher levels. Continued buying by ETFs and sovereign entities is not something that’s likely to disappear at current levels and hence at some stage in the next 1 year, much higher levels on gold are likely and we believe 3700 USD could be achieved fairly soon.”
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