Perspective on `Gold prices trade near 1-month high` by Mr. Colin Shah, MD, Kama Jewelry
Below the Perspective on `Gold prices trade near 1-month high` by Mr. Colin Shah, MD, Kama Jewelry
The yellow metal prices have rallied in the international and domestic markets. Prices have climbed to over $2730, over Rs 78,900 in the local market. The rally in gold prices is due to a combination of factors, including rising geopolitical tensions, central bank buying - especially the Chinese central bank - expectations of an ease in inflation, and a subsequent interest rate cut by the US Fed.
Falling inflation in the US will be key data to watch before the US Fed meets next week for its next monetary policy announcement. The prices of gold are rising despite a rising dollar index, which shows the strong demand for gold. Historically, a stronger dollar has led to a softening in gold prices.
The current price setup reinforces our long-term view of gold. We expect gold to make new highs in the short to medium term. In the long term, it may touch levels of $3000, albeit with bouts of volatility and price correction.
Above views are of the author and not of the website kindly read disclaimer
