Gold, like equities has turned volatile with an impending Syrian conflict and QE3 easing fears . Here are 4 cues that would move gold prices either way in the next few weeks.
Am impending strike looks certain
Should the US decide on a military strike on Syria it could send gold prices higher, given that it's a perfect hedge against a risky envioronment.
A prolonged conflict would ensure prices remain elevated.
Gaining rupee makes gold cheaper
The rupee has been gaining substantial ground against the dollar in the last few days, which should make cost of landed gold cheaper in India and hence domestic gold prices.
Lower US non farm payrolls data is good news for gold
The US non farm payrolls data came in at 1690,000, which has disappointed the markets, which were estimating a figure around 180,000.
This is likely to ease fears of the Fed tapering its asset purchase programme and send gold prices higher.
A rally to $1420 an ounce is possible
Chartists say that gold is due for a bounce and could rally to as much as $1420 an ounce next week. If that happens it could send Indian gold prices higher.