Gold price prediction today: Will gold & silver prices continue to fall in near term? Here’s the outlook
Gold price prediction today: Gold and silver prices may continue to decline in the near term, says Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers. He shares his views and recommendations for gold investors:Gold & Silver lost their festive shine in the last week, tumbling from record highs & snapping a nine-week rally as trade optimism between India – China amid falling global prices & easing global shortage in Silver market triggered profit-booking by investors.On the Multi Commodity Exchange (MCX), gold futures for December delivery plummeted by 2.80 per cent last week as Silver futures also succumbed to profit-taking, with the December contract crashing by almost 6 %. Both metals had been on a rise since the week ended on August 22 till Diwali festive.Gold selling also persisted this week as signs of easing trade tensions between the US & China continued to undermine demand for traditional safe-haven assets. The downfall led to an over three-week low which could also be attributed to technical selling following an intraday failure to find acceptance above the $4,000 psychological mark.Meanwhile, dovish Federal Reserve (Fed) expectations dragged the US Dollar (USD) lower this week, though it did little to lend any support to Gold. Even economic risks stemming from a prolonged US government shutdown failed to provide any respite for the bulls. This backs the case for further losses as the focus shifts to a two-day FOMC meeting ahead this week.
Gold Price Outlook: Weekly View
- Spot Gold (CMP 3918/Oz) – Volatile to Limited Upside
- Spot Silver (CMP 46.27/Oz) – Negative Bias
Bullions are expected to trade with potential for further losses in the current week amid upcoming global central bank meetings. On Wednesday, the Fed will announce its monetary policy decision following a two-day meeting. The CME FedWatch Tool shows that markets are fully pricing in a 25-basis-points (bps) interest rate cut. Because such a decision is unlikely to trigger a market reaction, investors will scrutinize the tone of policy statement & comments from Fed Chair Jerome Powell in the post-meeting press conference.Renewed optimism about US – China trade discussions could also cap safe-haven flows to gold. US Treasury Secretary Scott Bessent had earlier stated on Sunday that the US and China could agree on the framework of a potential trade deal that will be discussed when US President Donald Trump & Chinese President Xi Jinping meet later this week. This, in turn, remains supportive of the upbeat mood around the equity markets and might hold back traders from placing fresh bullish bets around the bullions pair heading into this week’s key central bank event risks.Spot Silver also continued to decline this week hitting a one-month low at $45.56 earlier in the day as the market entered a normalization phase after a record wave of free-floating metal inflows into London vaults, reducing the need for elevated prices to attract additional supply. The drop also came amid softer Indian demand post end of Diwali festival amid speculative position unwinding and easing physical activities continue to drive prices down.Spot gold is expected to trade with limited upside bias as a breach of $ 4000 /Oz psychological support this week now gives way to $ 3850 – 3730 /Oz next support levels which may be translated to Rs. 1,15,800 – 1,14,200 / 10 gm. supports MCX to be tested this week. Spot Silver on the other hand could now likely decline towards $ 44 – 45 /Oz support in near term translating to levels of Rs. 1,37,000 – 1,36,000 on MCX futures contract.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)