Gold price prediction today: Where is gold rate headed in the near-term amidst Trump’s tariff war? Here’s the outlook

Gold price prediction: old direction still remains sideways to slightly positive for the current week. (AI image)

Gold price prediction today: Gold rates are likely to maintain a sideways bias with limited upside in the near-term future. Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers shares his views and recommendations for gold investors:Gold prices ended the last week down on a weekly average basis despite the rally seen on Friday in International Spot markets. The rally in prices was seen driven by weaker US job data & tariff fears which weighed on the US Dollar. Meanwhile the rally was short lived as the US Dollar regained positive traction in the current week and recovered a part of Friday’s weaker-than-expected US jobs data-inspired losses, acting as a headwind for the yellow metal at higher levels. Apart from this, the prevalent risk-on environment contributed to capping the upside for the safe-haven precious metal this week.The US NFP released last Friday rose by 73,000 in July, versus a 14,000 increase (revised from 147,000) prior, the US Bureau of Labor Statistics (BLS) revealed. This figure came in below the market consensus of 1,10,000. Meanwhile, the US Unemployment Rate ticked higher to 4.2% in July from 4.1% in June, indicating softness in labour demand fuelling short covering moves in gold.With few macro data points lined up in the week, gold direction still remains sideways to slightly positive for the current week.Meanwhile, on the physical demand front, India’s domestic gold had generated physical buying interest during the last few weeks after a pullback in prices from Rs 1, 00,555 per 10 grams to Rs 97,700 per 10 grams was seen in domestic spot markets in July. Due to the drop in international prices last month, Indian Jewellers were also seen replenishing inventories, eventually offsetting the impact due to rupee depreciation. This is seen as a key indicator for Gold long term bullishness even though the short – term outlook still remains cloudy.

Gold Price Outlook

In the international markets, US Dollar could attract some buyers in the week ahead, as the same seemed to have stalled the post-NFP downfall. This could hold back gold bulls from placing fresh aggressive bets capping the sharp upside from current levels. Traders also look ahead to the US Jobless claims, Consumer Sentiment data & Fed speakers later this week for further direction in prices. Overall Spot gold could likely witness key resistance zones at $ 3,385 – 3,445 per oz (CMP $ 3350) which looks unlikely to be breached on a weekly basis.In the domestic markets uncertainties persisting on US – India tariff front have propelled local currency pairs to trade at new lows since February and could also support the domestic futures prices on MCX in near term as the same is seen holding above key 1 lakh mark per 10 gm since the start of the week.(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)