Gold may rally further amid macroeconomic uncertainty, global tariff tensions: Analysts

New Delhi: Gold prices are likely to extend gains in the coming week, as macroeconomic uncertainty, tariff disputes and central bank buying continue to underpin investor appetite for the precious metal, according to analysts.

Traders will closely monitor a series of key macroeconomic data releases from major economies, including the UK and EU GDP, the US Core PPI and Core CPI. Speeches by US Federal Reserve officials will also be in focus for further guidance on the near-term trajectory for the gold prices.

Prathamesh Mallya, DVP – Research, Non-Agri Commodities and Currencies at Angel One, said gold prices continue to rally and make new highs in the international as well as domestic futures. “From the lows of Rs 98,079 per 10 grams made on July 28, to the highs of Rs 1,02,250 per 10 grams, the shine in gold prices continues to increase the wealth of gold investors. In the international markets, prices have surged from $3,268 per ounce on July 30 to $3,534.10 per ounce as of August 8. The rally seems unstoppable,” he said.

Last week, the most traded gold futures for October contracts climbed Rs 1,763 or 1.77 per cent on the MCX.

Mallya attributed part of the rally to heightened tariff situation, which has caused chaos across the global world order and if it escalates further, then, gold might see further rally in the precious metal prices in the international markets towards $3,800 per ounce mark, while MCX futures will move higher towards Rs 1,10,000 per 10 grams mark over the next three months.

According to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, the near-term bias for gold remains positive as long as it sustains above Rs 99,000 per 10 grams.

On Friday, Comex gold futures for December delivery surged to an all-time high of $3,534.10 per ounce in New York before settling at $3,491.30 per ounce on Saturday.

Analysts also said that unless there is a sharp reversal in macroeconomic conditions, the combination of geopolitical uncertainty, trade tensions, currency fluctuations and central bank demand is expected to keep gold prices on an upward trajectory in the

medium term.