Gold price: Top 5 triggers that can decide the price of the yellow metal in the short term

According to commodity market experts, prices of the yellow metal erased their previous week’s gains from last week as demand for ‘safe haven’ slackened amid progress in Russia-Ukraine peace talks. gold price Sentiments turned bearish early last week as Russia pledged to reduce military operations around Kyiv. However, there is still a lot of doubt and there are no signs of concrete de-escalation. Apart from this, the dollar index has started climbing once again, while the US Fed has already indicated an increase in interest rates by about 50 bps in the next meeting. These triggers are expected to keep a watch on the sharp rise in the prices of the precious bullion metal in the near term.

Here we list down the top 5 triggers that can decide the price of gold in the short term:

1]Dollar Index: Speaking on how volatility in US dollar is affecting the price of gold today; Amit Sajeja, Vice President of Research at Motilal Oswal, said, “Recently, we have seen a sharp jump in the dollar index, which has acted as a check on the sharp rally in the yellow metal prices in the spot market. It will be interesting whether this increase in the US dollar remains at current levels or it will return this week as we saw in the case of the euro last week. Any increase in the dollar index will sustain the sharp rally in gold prices. “

2]Russia-Ukraine News: “Gold prices erased last week’s gains as safe-haven demand for the metal eased amid progress in Russia-Ukraine peace talks. Russia promised to reduce military operations around Kyiv. Commodity in Religare There is still a lot of skepticism, with no signs of concrete de-escalation, said Sugandha Sachdeva, VP of & Currency Research, which supported the precious metal around the psychological level of $1,900 an ounce, amid the flight to safety. Broking Limited

3]US Fed Interest Rate Hike: “US Fed has a tendency to prepare the market ahead of its scheduled meeting. Its recent statements for a 50 bps hike in interest rate should be viewed from this angle. However, the actual outcome of the US Fed meeting is yet to come and hence One should keep an eye on the US Fed meeting and the statements of their officials before the next meeting,” said Anuj Gupta, vice-president, IIFL Securities.

4]US data: Recently, the US has been able to report positive data on bond yields, but inflation is expected to remain a major concern. Although the US Fed has indicated that they will increase the interest rate by 50 bps at the next meeting, how its decision to increase the interest rate by 25 bps is important. Hence, the next US inflation data will be crucial and gold investors are advised to keep themselves updated with the latest US inflation data.

5]Rupee Vs Dollar: “Apart from global triggers, there is also a need to be cautious about domestic triggers. Following the easing of Russia-Ukraine tensions, crude oil prices have eased, which has strengthened the Indian national rupee against the US dollar (USD). However, in the matter, IIFL’s Anuj Gupta said that with no further positive developments in the Russia-Ukraine peace talks, crude oil may start to bounce again. Thus, dollar inflows will move north as we reduce our net worth. Oils import about 85 percent of the demand for securities.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.