Gold price prediction today: Gold is expected to trade in a sideways range with a bullish bias, while silver is likely to continue its bull run, says Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers. He shares views and recommendations for gold and silver investors:Gold prices turned bullish witnessing new all-time highs in International spot markets on Tuesday amid positive momentum persisting for six straight days since last week. Concerns over the Fed’s independence bolstered safe haven appeal of yellow metal with renewed demand persisting as traders maintained bets on Fed easing.It ended with 5 % monthly gains while Silver also continued to outperform for the third consecutive month. The yellow metal securing solid monthly gains, was supported by safe-haven flows, Fed policy expectations, and persistent geopolitical & economic uncertainty. Meanwhile, a spurt in prices was combined with a technical breakout on weekly charts, while any short-term profit booking move in prices now is likely to be viewed as dip-buying opportunities within the broader bullish trend which could now persist for months ahead.On the other hand, the USD had seen a short-covering bounce in the current week from over one-month troughs across the board, driven by profit taking, as traders now cash in before the releases of crucial US business surveys & employment data due later this week.The US ISM Manufacturing PMI remains on the radar next as speculations over a jumbo interest rate cut by the US Federal Reserve (Fed) this month grow’s. A 25 basis points (bps) September rate cut is fully baked in, with the CME Group’s Fed Watch Tool showing a 90% chance of the same in the meeting scheduled on 17 – 18 Sept.The headline ISM Manufacturing PMI is expected to advance to 49 in August from 48 in July, though remaining in contraction. On the other data front, the Greenback could come under renewed selling pressure, keeping the record rally in Gold alive. Additionally, concerns over the Fed’s autonomy amidst US President Donald Trump’s continued efforts to rope in more dovish appointments to the US central bank remain a drag on the USD, supporting the bright metal.The geopolitical developments between Russia and Ukraine also remain in focus, underpinning the traditional safe-haven Gold. On Sunday, Ukraine’s President Volodymyr Zelenskiy said Ukraine plans new strikes deep into Russia after weeks of intensified attacks on Russian energy assets, per Reuters. Trump noted last week that he was deeply disappointed, particularly in light of his recent attempts to mediate between Russia and Ukraine to bring an end to the war.
Gold Price Outlook
Weekly View: Sideways to Bullish Bias ( 1 – 2 weeks)MCX Trading Range: Rs 1, 03,400 – 1, 06,500 per 10 gm. (CMP 1,05,100 /10 gm.)Fundamentally with traders pricing in nearly 90 % chance of a 25 basis points (bps) rate cut by the Fed at the September policy meeting, which is up from 85% odds before the US PCE data released last week, according to the CME Fed Watch tool. Overall, any cautious pause in the rally in the near term is likely before the outcome of the US labour market report on Friday while broader bullish trend can still take prices to witness new highs in coming weeks.Technically speaking, Spot gold (CMP $ 3,485 per oz) had witnessed the Bull Cross of the 21-day Simple Moving Average (SMA) and the 50-day SMA on daily charts keeping the buoyant tone intact. The immediate topside hurdle is seen at the new record high of $ 3,508 per oz, above which the $3,550 psychological level can also be challenged. Broader bullish trend may also take prices to challenge $ 3620 – 3640 per oz in coming months.Conversely, any profit booking move in prices during the current week with a daily close below $3,470 could be followed by a test of weekly low’s around $3,437 per oz, as the same remains a dip buying opportunity for investors on a positional basis.Silver (CMP $40.57 per oz.) on the other hand is also expected to continue its bull run while profit booking moves could also be seen. Silver may test $ 42.75 – 43.00 per oz. in Spot in coming 2 – 3 weeks (MCX Silver Rs 1,27,000 – 1,28,000 per Kg.)(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)
