Gold Rates Increased To $2005/oz Level: What To Expect Next?

Gold rates in the global markets have reached above the $2005.40 level in the spot gold market on March 7, however, it came down to $1979.40/oz, till last traded. This week, investors and traders remained bullish about the gold market, and they were expecting an all-time high reach for the yellow metal. The Russia-Ukraine war has triggered the gold rates in the international markets to gain.

Gold has always been considered as a hedge against inflation. This time it has proven its strength as a safe haven. The geopolitical uncertainties have worried the investors and they have realized that holding positions in commodities can help them in the future. On the other hand, the US Dollar index too jumped significantly after the war started.

However, commenting on the upcoming price trend, Analysts Jim Wyckoff told Kitco News, "Price action in certain markets today is beginning to suggest to this market watcher of nearly 40 years that we may be close to such in several raw commodity markets. Crude oil and gold are both way down from their spike overnight highs. This suggests exhaustion in these important markets. These are the strongest early clues to date that raw commodity market bulls are running out of gas-at least on a near-term basis."

With rising inflation, the US Federal Reserve is also concerned at the moment. So, if they decide to hike the interest rate, gold prices can further fall internationally. This might help the retail demands of gold to boost in India.