Gold price prediction: The focus for the week will be on Governor Powell and other Fed members’ speeches. (AI image) Gold price prediction today: Gold rates have been fluctuating on the back of rapidly changing geopolitical situations, Donald Trump’s tariff moves and the ongoing Russia-Ukraine conflict.Gold is a safe haven investment in times of uncertainty, but the precious metal has been volatile in trade for the last few weeks after hitting lifetime highs. As investors it is important to watch out for cues.Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd shares his outlook on gold prices:Gold prices had a volatile last week, briefly surging above $3,200 as investors sought safe-haven assets amid a firm U.S. dollar and geopolitical uncertainty, including hopes for a Russia-Ukraine ceasefire following President Trump’s meetings with foreign officials. However, gains were short-lived, with gold falling over 2%, marking its worst weekly performance since last November, as risk appetite returned on signs of progress in U.S.-China trade talks. Moody’s downgrade of the U.S. sovereign credit rating added to market caution, citing concerns over mounting debt. Meanwhile, weaker-than-expected U.S. economic data—covering producer prices, retail sales, and industrial production—added to mixed sentiment.Debate intensified in Congress over President Trump’s proposed tax-cut bill, with uncertainty over its passage creating further volatility, especially after Trump warned of significant tax hikes if the bill fails. The U.S. dollar index remained below 100, while Treasury yields climbed sharply. Industrial metals and silver found support from a small cut in China’s loan prime rate, boosting broader economic sentiment.Although stronger dollar moves and profit-taking briefly weighed on gold, fiscal concerns and debt risks helped sustain its safe-haven appeal.Towards the end of the week, Trump threatened a 50% tariff on the EU and a 25% tariff on Apple if it shifts production to India. However, he later rescinded the EU tariff threat, giving the bloc until July to negotiate a trade deal, slightly easing global trade tensions. The upcoming week will focus on Fed speeches and key U.S. GDP, consumer confidence, Inflation and FOMC meeting minutes.
Gold Trading Strategy:
Buy above 96,500 for targets of 98,000 and 99,000, strong support is near 94,800 and 93,800.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
