COMMODITY MARKET: Gold prices are projected to undergo a short-term correction, potentially leading to a decline. In this article, we will explore the current market conditions and analyze the factors influencing the price of gold. By examining recent developments, we can gain insights into the future trajectory of this precious metal.
Current Market Analysis: According to Saumil Gandhi, a Senior Analyst specializing in commodities at HDFC Securities, gold prices exhibited a slight recovery on Friday. The spot gold price at Comex trading showed a 0.17% increase, reaching $1,917 per ounce. Simultaneously, the gold August future contract at MCX experienced a 0.10% upswing, valued at Rs 58,255 per 10 grams by midday.
Gandhi highlighted that the previous session witnessed a correction of nearly 1.0% in gold prices. This decline was attributed to the series of interest-rate hikes implemented by central banks and the more hawkish stance expressed by Federal Reserve Chairman Jerome Powell.
Investor sentiment was adversely affected by the Bank of England's unexpected decision to raise rates by 50 basis points. This rate hike exceeded market expectations and reflects the central bank's efforts to curb inflation, which has been reaching alarming levels.
Since reaching a near-record high in late May, Comex spot gold prices have experienced a significant decline of nearly 8%. These price fluctuations indicate a notable shift in the market dynamics surrounding this precious metal.
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