Globally, gold futures saw a slight decline of 0.03%, trading at ₹2,675.60 per ounce in New York.
Factors influencing gold prices
Several factors are currently shaping the gold market:
Economic data: The University of Michigan reported a decline in its consumer sentiment index to 68.9, down from a revised 70.1 in September, marking the first drop in three months.
This dip, coupled with rising US jobless claims, has raised concerns about economic stability, leading to increased demand for safe-haven assets like gold.
Geopolitical tensions: Heightened tensions in the Middle East and hopes for Chinese economic stimulus have added upward pressure on precious metal prices.
These geopolitical factors contribute to market uncertainty, often driving investors toward gold as a hedge.
Interest rates: With US economic indicators supporting the continuation of interest rate cuts, particularly due to high jobless claims and elevated crude oil prices, inflationary pressures may persist, further bolstering gold’s appeal.
What lies ahead for gold?
Market analysts anticipate continued volatility in gold prices in the coming weeks.
Key support levels for gold are projected at ₹75,980 to ₹75,810 per 10 grams, while resistance is expected between ₹76,460 and ₹76,670 per 10 grams.
“On the global front, gold is expected to find support around $2,624 to $2,605 per ounce, with resistance levels ranging from $2,661 to $2,678 per ounce,” said Rahul Kalantri, Vice President of Commodities at Mehta Equities.
Should one invest in gold now?
Investing in gold can be a prudent choice during times of economic uncertainty and volatility.
Ateen Trivedi, Vice President of Research Analyst at LKP Securities, suggests that as long as gold prices remain above $2,580 per ounce in the Comex, the outlook for gold remains supportive.
Current support levels indicate that investing at this point may present an opportunity, especially if one anticipates further economic fluctuations.
In conclusion, while gold prices have declined today, several factors suggest potential resilience in the market.
Investors should consider the economic landscape, geopolitical developments, and their personal investment strategy before making decisions.