Gold price prediction today: Why is gold rate showing signs of exhaustion around Rs 98,000 level & should you sell or buy?

Gold price prediction today: Gold rate has been swinging in the last few weeks and has recently pared gains. Global uncertainties make gold a safe haven bet, but the flow of relatively better news internationally, especially on Donald Trump’s tariff front, is taking the sheen off gold. What’s the gold price outlook for this week, and what should investors do? Maneesh Sharma, AVP - Commodities & Currencies, Anand Rathi Shares and Stock Brokers shares his views and recommendations:

Gold pared some of the gains witnessed last week as the market responded to mounting U.S. fiscal concerns & escalating trade rhetoric from President Trump. This also led to weakness in the dollar as the same stayed below 100, which continued to fuel demand for the yellow metal.

Moody’s recent downgrade of U.S. sovereign credit continued to weigh on market sentiment, highlighting the country’s unsustainable debt load. This was compounded by the House’s passage of Trump’s aggressive tax-and-spending package, which the CBO estimated to add nearly $4 trillion to the deficit

However, gains were quickly unwound at the start of the current week as Trump extended the implementation of a 50 % tariff deadline on goods from the European Union to July providing some relief to equity markets ultimately soothing safe haven flows into gold.

Gold Price Outlook

Recent signs that the White House may be making nascent progress in negotiations with some trading partners have curbed investor’s desire to hold more of the haven asset such as gold. Physically-backed gold exchange-traded funds have also been in an outflow mode since past five straight weeks after peaking at the highest in more than a year in mid-April indicating gold prices may find some room to consolidate in the short term perspective of 1 - 2 months.

For the current week market participants are eyeing Fed meeting minutes & US preliminary GDP estimate for further direction in Gold prices. Any hawkish stance by members in meeting minutes could confirm rate cut delay until September month leading to further profit booking moves in bullion prices in coming days. On the other hand, escalation seen in Russia Ukraine Geopolitics could fuel volatility in prices at lower levels as no signs of truce emerges so far.

Gold Weekly View: Sideways to Downside Bias

• Strategy: Sell on Rise (Duration 1 – 2 Weeks)

Gold had shown signs of exhaustion at levels above Rs. 98,000 in MCX futures contract since last week of April. MCX Aug. futures (CMP 95,731 / 10 gm) could turn bearish in case it gives a daily close below 95,400 /10 gm as levels of 93,200 – 92,400 could be witnessed in 1 – 2 weeks perspective.

(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)