Gold price prediction today: Where is gold rate headed in the near-term & why are prices stuck in a range? Here's the outlook
Gold price prediction today:
Gold rates
are stuck in a range, feel analysts, Maneesh Sharma, AVP - Commodities & Currencies, Anand Rathi Shares and Stock Brokers shares his views and recommendations for gold investors:
Gold prices which rose in the initial half of the past week erased its gains towards the end. The precious metal edged lower after unexpectedly strong US Producer Price Index (PPI) data released showed inflation remaining higher on Month on Month basis.
Hotter-than-expected PPI inflation data released on Thursday prompted traders to trim wagers on rate cuts by the Federal Reserve (Fed) in September, which created a headwind for the yellow metal.
On physical market front, gold demand in India improved slightly last week as a price pullback lifted buying interest among consumers, while activity in other top Asian hubs remained lacklustre. Jewellers placed healthy orders with manufacturers at the India International Jewellery Show for the upcoming festival season despite elevated prices.
Indians to celebrate the Dussehra & Diwali festivals in October, when buying gold is considered auspicious.
Gold may continue to witness range bound moves in the current week ahead of all important Jackson hole symposium where Fed Chair Powell would deliver its speech providing insights on the trajectory of rate cuts this year. Likely stance that Fed Chair Powell delivers a dovish shift is eminent from Fed funds future pricing in 21 – 25 bps of rate cuts in September although the big jump in July's PPI inflation adds a layer of uncertainty raising the risk that Fed chair may signal even 2 – 3 rate cuts this year.
Physical gold demand in Asia remains mixed in recent week as the jewellery sector continues to struggle under the weight of high prices with no new import quotas announced & actual physical demand from Chinese traders appears more or less limited.
Meanwhile on global macroeconomic front, dollar looks vulnerable to remain subdued amid fresh strength seen in Euro to keep gold downside limited in the current week.
Weekly View Gold: Range bound
MCX (Oct fut.) trading range (1 – 2 weeks): 1,01,500 – 97,200 / 10 gm. (CMP Rs. 99,360)
On the geopolitical front with yesterday's summit in Washington resulting in a clearer roadmap for peace talks & some openness about security guarantees from the US had only resulted in temporary downside for gold.
US macro developments including FOMC meeting minutes due tomorrow & Fed chair speech due later in the week remain the biggest driver for dollar & gold, which could provide major directional bias for the yellow metal. On the international markets, Gold could continue to trade in a range of $ 3365 – 3310 on a weekly basis.
Stay informed with the latest
business
news, updates on
bank holidays
,
public holidays
, current
gold rate
and
silver price
.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
3 minutes ago
- India.com
Global Tech Leader Suresh Dodda Delivers AI Breakthroughs in Benefits and Payroll
Dodda is a 24 year veteran of tech leadership and groundbreaking AI research, and is revolutionizing Benefits and payroll systems into strategic intelligence engines. Suresh Dodda is a global AI researcher and enterprise technology leader who is enabling innovations that are revolutionizing industries such as human capital management and data privacy to high definition medical imaging. Having over 20 years of experience in the technology field and an experience of translating academic research into real-life practice, the work of Dodda is changing the way organizations are functioning. In his award winning research paper, AI-Driven Decision Support Systems in Management: Enhancing Strategic Planning and Execution, he proposes AI driven frameworks to integrate payroll, attendance and benefits data into predictive models. Such systems help predict labor costs, the trend of benefits and identify compliance risks and transform HR and payroll into key strategic functions rather than back-office operations. Dodda is additionally the single author of the IEEE-published paper Exploring Variational Autoencoders and Generative Latent Time-Series Models Synthetic Data Generation and Forecasting. This innovation employs generative AI to generate privacy-safe datasets of workforces that can be used in predictive modelling and simulation of workforces without revealing sensitive data, an important application in regulated sectors. His work Exploring AI-Driven Innovations in Image Communication Systems to Enhance Medical Imaging Applications in healthcare uses AI to enhance medical images as they are transmitted, processed, and analyzed. The outcomes: crisper images, less time delay in diagnosis and real-time decision making to the radiologists and clinicians. The global giants have already integrated the AI-driven solutions by Dodda in various spheres, saving millions of dollars and establishing new standards of efficiency. His work has been acknowledged by the industry peers as innovative and on a large scale. Dodda is a Senior Member of IEEE and a Fellow of BCS and IETE, serving on editorial and advisory boards of leading AI and engineering journals and major industry awards, including IEEE, TITAN, AVIA and Globee. His awards are Titan Award 2024- Technical Professional of the Year and Global Leaders Award- Most Emerging Technology Leader (AI & ML Research). In the future, Dodda is working on AI chatbots to be used in HR interactions, sophisticated fraud detection systems, and secure international medical imaging systems. Tomorrow AI will not only analyze data but will also actively influence the improvement of business strategies and healthcare outcomes, he says. Dodda is a U.S.-based Master of Computer Applications and an AWS Solutions Architect. An expert in AI/ML, Java, Spring Boot, and microservices, he is developing data-intensive cloud-native platforms, and mentors talent worldwide, on platforms such as ADP List.
Economic Times
6 minutes ago
- Economic Times
US Fed minutes could show whether Waller and Bowman had company in favoring rate cuts soon
AP This photo combo shows, from left, Federal Reserve Board of Governors member Christopher Waller and Michelle Bowman, Vice Chair for Supervision of the Federal Reserve Board of Governors Last month's decision by the U.S. Federal Reserve to hold interest rates unchanged prompted dissents from two top central bankers who wanted to lower rates to guard against further weakening of the job market, and a readout of that two-day gathering on Wednesday could show whether their concerns had started to resonate with other policymakers, perhaps reinforcing expectations that borrowing-cost reductions could begin next month. Not even 48 hours after the conclusion of the July 29-30 Federal Open Market Committee meeting, data from the Labor Department appeared to validate the concerns of Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller when it showed far fewer jobs than expected were created in July, the unemployment rate ticked up and the labor force participation rate slid to its lowest since late 2022. More unsettling, though, was an historic downward revision for estimates of employment in the previous two months. That revision erased more than a quarter of a million jobs thought to have been created in May and June and put a hefty dent in the prevailing narrative of a still-strong job market. The event was so angering to President Donald Trump that he fired the head of the Bureau of Labor Statistics. Data since then, however, has provided some fodder for the camp more concerned that Trump's aggressive tariff regime risks rekindling inflation to hold their ground against moving quickly to lower rates. The annual rate of underlying consumer inflation accelerated more than expected in July and was followed by an unexpectedly large jump in prices at the producer level. "The minutes to the July Federal Open Market Committee will give a more nuanced sense of the split on the committee between the majority that voted to leave rates on hold and the dovish bloc led by dissenting Governors Miki Bowman and Christopher Waller," analysts at Oxford Economics wrote ahead of the minutes release, set for 2 p.m. ET (1800 GMT) on Wednesday. "However, the minutes are more stale than usual since they predate the revised payroll figures, which prompted a rapid repricing of the probability of a September rate cut." Heading into the release of the minutes, CME's FedWatch tool assigns an 85% probability of a quarter-point reduction in the Fed's policy rate from the current range of 4.25%-to-4.50%, where it has remained since reason the minutes may feel stale on arrival is they come just two days before a highly anticipated speech from Fed Chair Jerome Powell at the annual economic symposium near Jackson Hole, Wyoming, hosted by the Federal Reserve Bank of Kansas keynote speech on Friday morning - set to be his last Jackson Hole address as Fed chair with his term expiring next May - could show whether Powell has joined ranks with those sensing the time has come for steps to shield the job market from further weakening or if he remains in league with those more wary of inflation in light of its moves away from the central bank's 2% target. The lack of Fed rate reductions since Trump returned to the White House has agitated the Republican president, and he regularly lashes out at Powell for not engineering rate cuts. Trump is already in the process of screening possible successors to Powell and after the unexpected resignation earlier this month of one of the seven Board of Governors members, he has a chance to put his imprint on the Fed has nominated Council of Economic Advisers Chair Stephen Miran to fill the seat vacated by Adriana Kugler, a term that expires at the end of January. It is unclear whether Miran will win Senate confirmation before the Fed's September 16-17 meeting.
Economic Times
6 minutes ago
- Economic Times
Rupee edges lower as dollar sales by foreign banks offset most of greenback demand
The Indian rupee slipped on Wednesday, as corporate hedging and short-term speculators bolstered demand for the greenback, most of which was met by dollar sales by foreign banks. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Markets 1. Rupee appreciated 40 paise to close at 86.99 against US dollar The Indian rupee slipped on Wednesday, as corporate hedging and short-term speculators bolstered demand for the greenback, most of which was met by dollar sales by foreign rupee settled at 87.0650 to the U.S. dollar against its close of 86.9500 on Tuesday when it climbed the most in over a month, boosted by speculation over Russia-Ukraine peace said foreign banks were active sellers of dollars on Wednesday, limiting rupee depreciation despite significant hedging by importers.A rally in local equities and position squaring also helped the Indian currency recover after recent pressure, traders weeks have seen the rupee's direction influenced by news around U.S. tariffs on India, S&P's upgrade of the nation's sovereign credit rating and Prime Minister Narendra Modi's planned tax cuts on goods and portfolio investors turned buyers of Indian assets in the past three sessions after net selling Indian markets in the last few weeks over tariff uncertainties."FPIs have turned steady buyers in Indian markets, encouraged by hopes that the U.S. may reconsider its plan to impose an additional 25% tariff on Indian exports," said Amit Pabari, managing director at CR return of foreign inflows comes even as U.S. Treasury Secretary Scott Bessent on Tuesday accused India of profiteering from its purchases of Russian oil during the war in Asian currencies traded mixed on the day, while the dollar index was slightly higher at 98.21 as on 1549 traders will also tune in to Federal Reserve Chair Jerome Powell's speech at Jackson Hole, Wyoming, on Friday, which may provide clues on the U.S.'s interest rate trajectory."A signal that cuts may be delayed could strengthen the dollar, while any indication of looser policy may weigh on it and encourage risk-on sentiment," Pabari added.
