Gold price prediction today:Gold rates are stuck in a range, feel analysts, Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers shares his views and recommendations for gold investors:Gold prices which rose in the initial half of the past week erased its gains towards the end. The precious metal edged lower after unexpectedly strong US Producer Price Index (PPI) data released showed inflation remaining higher on Month on Month basis. Hotter-than-expected PPI inflation data released on Thursday prompted traders to trim wagers on rate cuts by the Federal Reserve (Fed) in September, which created a headwind for the yellow metal.On physical market front, gold demand in India improved slightly last week as a price pullback lifted buying interest among consumers, while activity in other top Asian hubs remained lacklustre. Jewellers placed healthy orders with manufacturers at the India International Jewellery Show for the upcoming festival season despite elevated prices. Indians to celebrate the Dussehra & Diwali festivals in October, when buying gold is considered auspicious.Gold may continue to witness range bound moves in the current week ahead of all important Jackson hole symposium where Fed Chair Powell would deliver its speech providing insights on the trajectory of rate cuts this year. Likely stance that Fed Chair Powell delivers a dovish shift is eminent from Fed funds future pricing in 21 – 25 bps of rate cuts in September although the big jump in July’s PPI inflation adds a layer of uncertainty raising the risk that Fed chair may signal even 2 – 3 rate cuts this year.Physical gold demand in Asia remains mixed in recent week as the jewellery sector continues to struggle under the weight of high prices with no new import quotas announced & actual physical demand from Chinese traders appears more or less limited.Meanwhile on global macroeconomic front, dollar looks vulnerable to remain subdued amid fresh strength seen in Euro to keep gold downside limited in the current week.
Weekly View Gold: Range bound
MCX (Oct fut.) trading range (1 – 2 weeks): 1,01,500 – 97,200 / 10 gm. (CMP Rs. 99,360)On the geopolitical front with yesterday’s summit in Washington resulting in a clearer roadmap for peace talks & some openness about security guarantees from the US had only resulted in temporary downside for gold.US macro developments including FOMC meeting minutes due tomorrow & Fed chair speech due later in the week remain the biggest driver for dollar & gold, which could provide major directional bias for the yellow metal. On the international markets, Gold could continue to trade in a range of $ 3365 – 3310 on a weekly basis.(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)
