Crude Oil Price vs. US Dollar: Top 5 Short-Term Gold Price Triggers

Gold Price Outlook: Following the easing of the dollar index and the slowdown in global inflation, the prices of yellow metals reached their highest level in 5 weeks last week. The precious metal ended last week in positive territory for the fourth week in a row, posting a weekly gain of around 1.37%.

According to commodity market experts, the overall outlook for gold is positive and could go up to 53,500 levels on short-term MCX. They said the spot gold price was trading between $1,760 and $1,820 an ounce and could reach $1,850 in the short term. They said gold investors should remain vigilant for the dollar index, commodity prices, U.S. retail sales data due Aug. 17, and other triggers that will take place next week. next week.

Here we list the top 5 triggers that are likely to dictate the price of gold in the near term:

1]Crude Oil Price: “It remained volatile the previous week and any sharp move in the same direction would have implications for inflation expectations as well as gold prices,” said Sugandha Sachdeva, Vice President – Commodities Research and currencies at Religare Broking.

2]Dollar index: “The key variable to watch would be the movement of the Dollar Index. After sliding to lows of around 104.63 over the week, the Greenback was seen forming a base and staging a rally. strong recovery towards the end of the week, if the DX manages to hold above the 104.50 mark, we could see some selling pressure on the precious metal,” Sugandha Sachdeva said.

3]U.S. retail sales data release: The FOMC meeting and the release of US retail sales data on August 17, 2022 will be an important event for gold investors as it will provide insight into the US economy.

4]Rupee against dollar: “After the dollar index hit a 20-year high of 109.30, it fell below 105 levels last week, establishing a base around 104.50. Indian National Rupee (INR) against the US Dollar (USD) is expected this week, which is positive for the yellow metal, so gold investors are advised to remain vigilant on this domestic trigger,” said Anuj Gupta, vice president of research at IIFL Securities.

5]Global economic data: Plenty of economic data releases are slated for the coming week, in which eyes would be on the latest readings for the Empire State Manufacturing Index, Building Permits, Housing Starts, Manufacturing Index from the Philadelphia Federal Reserve, existing home sales data and industrial production data. the United States. UK CPI, Eurozone CPI and GDP would also be on the radar of market participants and will guide gold prices over the coming week.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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