Gold Rate Todays Updates : Gold prices have shown surprising stability this week despite renewed fears of a U.S. recession, rising geopolitical tensions in the Middle East, and the ongoing U.S.-China trade war. On the Multi Commodity Exchange (MCX), gold closed at ₹69,850 per 10 grams, marking a modest increase of ₹58 from the previous Friday’s close. Meanwhile, COMEX gold ended at $2,470 per troy ounce, down by $16 from the previous weekend’s close. This sideways movement has caught many gold investors off guard, as the precious metal was widely expected to surge in response to global uncertainties. Instead, gold prices mirrored the stock market’s movements, with a 4.40% drop from Friday’s high to Monday’s low, followed by a 2.50% recovery.
Commodity market experts point to the Bank of Japan’s interest rate hike and the subsequent unwinding of the Yen carry trade as key factors influencing this trend. Investors shifted from the Japanese Yen to the U.S. Dollar, causing gold prices to fall initially. However, after intervention from the Japanese government, the tide turned, and investors began moving back to the USD. Analysts expect gold prices to continue following the stock market closely, as both are heavily influenced by the upcoming U.S. Federal Reserve meeting in September.
Addressing concerns about gold’s status as a safe haven, Chintan Mehta, CEO of Abans Holdings, noted that gold is falling along with other risk assets as liquidity tightens across markets. This shift, driven by rising interest rates and the increasing cost of Yen-based debt, has prompted investors to liquidate their positions and seek safety in cash. The broader market fear is evident as investors retreat from both risky and traditionally safe assets.
Alex Kuptsikevich, Senior Market Analyst at FxPro, highlighted the increased volatility in gold prices over the past week, with a sharp decline followed by a partial recovery. Technically, gold found support at its 50-day moving average, but the upcoming week will be crucial in determining whether this recovery is temporary or marks a more sustained trend.
Looking ahead, the outlook for gold remains uncertain. While lower interest rates could theoretically support gold prices, past experiences, such as the September 2012 bear market, suggest that the start of Fed easing might actually be negative for gold. Investors are advised to stay cautious and await further clarity from the Federal Reserve and other central banks before making any significant moves.
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