Gold Price Post Fourth Consecutive Weekly Gains; Outlook Positive In The Near Term

Gold price posted fourth consecutive weekly gains and in the international markets spot gold settled higher at $1804, up 0.78% in the previous session. As per the commodity market experts, deceleration in the US inflation brought down the US dollar to a 5-week low which helped the precious yellow metal to climb.

Why gold price climbed in the week to August 12, 2022?

As per Sugandha Sachdeva, Vice President - Commodity & Currency Research at Religare Broking, gold prices made a comeback this week as "A softer than expected inflation print from the US was the key highlight of the week which suppressed the dollar index to a five-week low and favored flows in the safety of gold. The US consumer price index rose 8.5 per cent in July (Y-o-Y), at a slightly slower pace as against a red-hot inflation reading of 9.1 per cent in June. Besides, the US producer prices rose 9.8 per cent in July from a year earlier, compared to a forecast of 10.4% and the rise of 11.3% in June, amid improving supply-chain conditions."

Also she added that the price pressure in the US has more or less peaked owing to the softening of the energy prices, lessening bets of an aggressive rate hike move by the Federal Reserve in the months to come.

Survey results for gold

Out of 11 analysts participating in the weekly gold survey by Kitco, only 9% were neutral, 45.5% projected higher prices, and the other 45.5% said gold will move lower.

Gold MCX price and outlook

Back home on the MCX, gold futures contract for October in Friday's session ended higher by 0.46% at Rs. 52579 per 10 gm. There is a view that gold prices is expected to maintain its sheen and may go up to Rs 53,500 mark in the near term. With respect to the spot gold prices overseas, the experts suggest that currently the prices are moving in the range of $1760-$1820 per ounce and once it moves past the upper band, it may scale up to $1820 per ounce.

GoodReturns.in