Perspective on Gold Performance during the Week and Outlook by Mr. Colin Shah, MD, Kama Jewelry
Below the Perspective on Gold Performance during the Week and Outlook by Mr. Colin Shah, MD, Kama Jewelry
“The gold market showcased a highly dynamic trend this week, reflecting the impact from the tension between elevated geopolitical uncertainties and macroeconomic friction. While the surge in energy prices initially fuelled the safe haven appeal, lingering inflationary concerns and the prospects of a conservative approach in the monetary policy capped the rally, kept the price in check with a modest weekly gain.
Going forward, the price trajectory of the yellow metal will largely depend on the Central Bank’s commentary and also the US Fed’s decision. It is likely that immediate rate actions may remain on pause, although, any hawkish tone regarding inflation could trigger short-term market recalibration. Having said that, support near USD 4000 remains a crucial floor for the metal.
On the demand dynamics, long term structural demand will continue to be resilient with mild jitters based on real-time economic developments, with consumer preference inclining more towards lightweight jewellery given the steep gold prices raising concerns around general affordability.”
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