Gold price prediction today: Will gold prices continue to rise this week? Check outlook ahead of Dhanteras
Gold price prediction today: Gold prices may cross $4,200 in the international markets this week, but the downside risks remain and trade is likely to be volatile, says Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers. He shares his views and recommendations for gold investors:Gold continued to post its eight consecutive weekly gain last week while it also went past $ 4150 per oz in spot today as renewed US-China trade tensions sent investors flocking to safe-haven assets. Escalating trade tensions between the US & China reignited fears of a trade war between the world’s two largest economies, boosting safe-haven assets like the Gold. US President Donald Trump announced that he will impose new trade measures against Beijing, including 100% tariffs on all Chinese goods & export controls on critical US-developed software, due to take effect by 1 November. But despite trump adopting a less stringent stance later, prices were seen rallying to new highs. Expectations also mounted for further interest rate cuts by the US Fed, which contributed to Gold’s upside. Markets are currently pricing in an almost certain 25 basis points (bps) rate cut at the Fed’s October meeting, with another reduction expected in December, according to the CME FedWatch tool.Primary drivers of the ongoing rally were huge ETF inflows, Fed rate cut expectations & inflation hedging as US Shutdown & de dollarization moves persisted. The US treasuries being held by the central banks fell to the lowest level since 2013 as central banks continue to diversify from US dollar into gold & other assets.Major US data on cards this week include retail sales, PPI final demand numbers, Housing starts, & leading index, which could also be delayed as US shutdown drags on supporting sentiments in gold. Meanwhile, the current rally was met by warnings from agencies like WGC that downside risks could develop in the near term, though broad bias could remain positive through year end.
Gold Price Outlook
- Gold: Weekly view – Volatile to Positive bias
- Silver: Weekly View – Volatile
Gold could continue to maintain its bull run challenging $ 4200 per oz on the higher side this week, but downside correction risk continues to increase due to parabolic rise in prices in the last eight consecutive weeks.Meanwhile white metal Silver which had risen on concerns about a lack of liquidity in London have sparked a worldwide hunt, with benchmark prices soaring to near-unprecedented levels over New York since the last few weeks. The global silver market remains less liquid having 8 – 9 times smaller volumes than the gold market, being the reason for amplifying price moves seen. Silver experiencing a perfect storm of temporary market squeezes & long-term structural support, meaning prices could stay volatile in near term. Investors should remain cautious for sharp pullbacks in the short to medium term scenario.In India, Silver ETFs are quoting at a premium compared to futures prices also indicating supply demand imbalance where ETFs are facing severe difficulties in sourcing physical silver. The physical market in India is facing a delivery delay of more than 10 days for delivery of Silver. Meanwhile we continue to anticipate higher end-of-2026 price targets for silver to around $60 – 65 per oz levels, citing persistent market deficits, elevated fiscal gaps & lower interest rates.(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)
