Understanding Gold Price Trends and Future Outlook

24 Karat gold price may stay low soon due to less demand worldwide. (AI image)

Gold prices are getting a lot of attention lately. People want safe investments because of the Iran-Israel conflict. This week, we’re watching the US Federal Reserve for news on rate cuts. Gold prices might change a lot soon.

Maneesh Sharma, a commodities and currencies expert, shares his thoughts and advice:

What’s Happening with Gold Prices?

Gold prices went up last week. This is because of tensions in the Middle East and hopes for a Federal Reserve rate cut. Investors didn’t pay much attention to good US economic news. Instead, they focused on world events.

Gold as a Reserve Asset

Gold is now the second most popular reserve asset, after the US dollar. Central banks are buying more gold, and prices are going up. Now, 19.6% of global reserves are in gold. The euro makes up 15.9%.

A World Gold Council survey found that 95% of people think central banks will buy more gold in the next year. A record 43% also plan to increase their own gold reserves. No one expects to sell their gold.

US-China Trade Issues

In China, the recent trade agreement with the US still has problems. They haven’t solved the issue of rare earth exports for military use. China won’t allow exports of certain rare earth metals used in US weapons. This is a big issue for the global supply chain.

What to Watch This Week

This week, we’re watching the Middle East crisis and central banks, including the US Federal Reserve. The Bank of Japan won’t raise interest rates this year because of uncertainty about US tariffs.

Everyone is waiting for the June 18 Fed meeting. What they say could affect gold prices for the rest of 2025. US policymakers will likely wait until September before making any moves. Markets expect two rate cuts later this year.

Traders are also watching oil prices. If they go up, the Indian rupee could weaken. This might keep domestic prices high in the near future.

Gold Price Weekly View: Volatile (1 – 2 Weeks)

• On MCX futures (Aug CMP Rs 99,385), gold could trade between Rs 97,200 and Rs 1,02,500 per 10 gm.
• Silver might go up. It could test Rs 1,10,000 – Rs 1,13,000 per kg on MCX (Aug) futures in the next 1-2 weeks.
• Gold prices in India have dropped recently. High prices have reduced demand for jewelry. 24 Karat gold prices might stay low soon due to less demand worldwide.

Disclaimer: Experts’ advice on the stock market and other assets are their own. These opinions don’t represent the views of The Times of India.