Gold prices have witnessed a consecutive decline, reaching a two-week low in the futures market. As investors ponder whether this trend will persist, experts offer insights into the factors at play and the potential outlook for gold.
While short-term pressures on gold prices are evident, long-term prospects remain influenced by various factors. Currently, the strengthening US dollar and an uptick in the bond market contribute to the downward pressure on gold. However, anticipation of central bank interest rate cuts could drive a reversal in the long term.
With strong US non-farm labor data and comments from US Federal Reserve Chairman Jerome Powell ruling out a rate cut in the near future, short-term expectations lean towards further price declines. This presents an opportunity for long-term investors to capitalize on potential dips.
Political tensions, geopolitical uncertainties, inflation concerns, and prospects of interest rate cuts are among the factors anticipated to buoy gold prices in the long term. While technical indicators suggest a short-term bearish sentiment, optimism surrounding future interest rate cuts and ongoing global tensions could bolster gold's appeal as a safe-haven asset.
India's affinity for gold extends beyond ornamental purposes, with gold emerging as a significant investment avenue. The launch of gold bonds by the Reserve Bank of India (RBI) further cements gold's status as a preferred investment option. With bond sales set to commence soon, gold investments in India are expected to witness a surge, contributing to potential future price hikes.
Data in this section is not a buy/sell recommendation but only a compilation of information on various technical/volume-based parameters
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