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Below the Perspective on Gold Prices by Mr. NS Ramaswamy, Head of Commodities at Ventura

“Gold prices continues to surge (Comex Futures $3407 an ounce) as US Dollar tumbles. Its more than 60% gains since March 2024. A weaker dollar tends to bolster demand for gold, as it makes the metal more affordable to investors holding foreign currencies.

The rally is largely driven by renewed uncertainty surrounding U.S. monetary policy, after President Donald Trump unveiled plans to overhaul the Federal Reserve. The criticism of the Federal Reserve by President Donald Trump has shaken the investor confidence pushing the dollar sharply lower and catapulting safe-haven gold to a record high.

These are stoking concerns about the independence of the Fed, sending ripples through financial markets. US Dollar (three-year low) and the risk-on equity markets takes a beating while Gold stands to benefit.

Gold prices recent climb is also driven by escalating geopolitical risks, strong central bank demand, and persistent inflation concerns. There are heightened tensions in the Russia-Ukraine front too.

This new layer of uncertainty is complicating the path ahead for the US Fed decision on the interest rates.

The short-term rally remains debatable beyond $3500. However, the longer term underlying bullish strength could well surpass $3500 and scale unpredictable highs. Every price correction could well see only higher lows with supports seen at $3280, $3150 and $3080.”

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