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Below the Perspective on Gold Price Movement by Mr. NS Ramaswamy Head -Commodity desk and CRM - Ventura

“Risk off sentiments dominates as middle east conflicts between Israel and Iran escalate. US stock indices too indicated this impact with a weaker opening. US and Iran too is engaged in a long-standing power struggle.

US-China trade deal optimism was short-lived with limited details as US President Trump once again raises the trade tariff uncertainty, which added to the gold appeal. Gold’s rise is further supported by easing inflation pressures in the U.S. Both the inflation reports from US has fuelled expectations of  aggressive interest rate cuts by the FED, but for the risk of tariff impacts in the coming months. Weakness seen in USD against major currencies. US Dollar weakening is also due to FED likely pausing rate hikes. Global central banks are on pace to accumulate over 1,000 metric tons of gold in 2025, marking a fourth consecutive year of heavy buying.US Central Bank decisions from FED is slated for 18^th June 2025 (Wednesday) which could provide a clearer path. Gold’s safe-haven appeal is likely to remain strong, particularly amid ongoing global uncertainties. It remains a critical asset in the portfolios of investors seeking stability and protection from volatility. Gold in the international COMEX market is likely to surpass the $3509 high from the present $3430 levels and create a high of $3540 in the short term with resistance at $3476. Support for COMEX Gold is seen at $3400 and $3345. Gold in the domestic market MCX August Futures presently is Rs.99800 (Made high of Rs.100403). With support at Rs.98900, its poised to surge to Rs.102000 in the short term.”

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