The gold market, often regarded as a safe-haven investment, experienced a roller-coaster ride recently. After reaching weekly highs in Thursday’s deals, gold prices encountered profit booking ahead of the commodity market’s closing bell. The commodity futures contract for August 2023 expiry on the Multi Commodity Exchange (MCX) came close to ₹59,000 per 10 gm levels, erasing the entire weekly gains. Meanwhile, in the international market, the yellow metal’s price oscillated around $1,951 per ounce levels, while on MCX, it hovered around ₹59,200 per 10 gm levels.
Factors Behind Gold Price Fluctuations
Experts attribute the retracement of gold and silver prices to the release of upbeat US GDP and jobless claim data. The strong economic data hinted at a robust recovery in the US economy, which led investors to reevaluate their investment strategies.
The international market currently shows the precious metal prices oscillating between $1,935 and $1,985 per ounce in a base-building mode. Experts foresee an economic upturn pressuring prices, possibly leading to a $10 to $15 dip in the global market.
Gold’s Prospects and Support Levels
Despite the short-term dip, market experts remain optimistic about the prospects of the precious metal. The precious metal has historically served as a hedge against inflation and economic uncertainties. Therefore making it an attractive asset for investors during turbulent times.
In conclusion, the gold market’s recent fluctuations have drawn attention to the precious metal’s role as a safe-haven asset amid changing economic conditions. Experts predict a demand rebound for precious metals if attractive support levels are found, despite profit booking post-strong US data. Investors considering the commodity gold, kg of gold price, or 9ct gold per gram price should carefully monitor market developments.
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