Are Gold Prices Set for an Upward Trend?
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Synopsis
Gold prices are experiencing a consolidation phase, which could lead to an upward trend. Factors such as US interest rates and currency fluctuations play a crucial role in this dynamic. Discover the insights from Emkay Wealth Management's latest report and what it means for the future of gold.
Key Takeaways
- The gold market is in a consolidation phase.
- Potential upward trend anticipated.
- Influencing factors include US interest rates and Dollar fluctuations.
- Technical supports for gold are at US$3,297 and US$3,248.
- Expectations of rate cuts could drive prices higher.
New Delhi, July 11 (NationPress) The international gold prices are currently undergoing a consolidation phase, which sets the stage for the precious metal to potentially experience an upward trend, according to a recent report released on Friday.
The market is closely monitoring two key factors that influence price movements: the trajectory of US interest rates and the expected decline of the US Dollar against major currencies, as noted by Emkay Wealth Management in its latest Navigator report.
Amid uncertainties concerning the impact of tariffs on US retail prices, and with the Federal Reserve currently taking a pause, a significant trigger for gold price movement appears to be absent.
Considering the prevailing economic conditions and the relatively low inflation rates, the probability of the Fed making one or two rate cuts before the year's end seems to be quite high, the report indicates.
The expected drop in the US Dollar against other currencies—another critical factor for gold—can only occur if there is a sustained decrease in US Dollar yields and interest rates.
The Emkay report highlights that the Dollar index stands at 97.00, reflecting a decline of nearly 10 percent over the last six months and a similar drop since the start of this calendar year.
The wealth management firm emphasizes that further declines in the Dollar, driven by official rate cuts and reduced market yields, are essential.
In the meantime, a stable Dollar and strengthening US bond yields have exerted downward pressure on precious metal prices over the last two weeks.
The technical support levels for gold are identified at US$3,297 and US$3,248, according to the report.
Earlier this year, demand from China was frequently cited as a factor bolstering gold prices; however, the reported selling activity from China in late April and early May has diminished this influence in the broader context.
There is a prevailing belief that with the new budgeted expenditures of $4.60 trillion, the situation could become increasingly complicated, as the resulting borrowings may exert upward pressure on yields, according to Emkay.
Point of View
I believe that the current trends in gold prices highlight the delicate interplay between economic indicators and market sentiment. Our analysis aims to provide clarity during this period of uncertainty, ensuring that our audience remains well-informed and prepared for potential market shifts.
NationPress
30/08/2025
Frequently Asked Questions
What is the current trend in gold prices?
Gold prices are currently in a consolidation phase, which could lead to an upward trend as economic factors evolve.
What factors influence gold prices?
Key factors include US interest rates and the performance of the US Dollar against other currencies.
What is the outlook for US interest rates?
There is a high likelihood of one or two rate cuts by the Federal Reserve before the end of the year.
How does the US Dollar affect gold prices?
A decline in the US Dollar can positively impact gold prices, especially if it coincides with lower interest rates.
What support levels exist for gold?
Technical support for gold is noted at US$3,297 and US$3,248.
