New Delhi: Gold prices are expected to remain firm next week as investors track key economic data from the US and other major economies for further clues on the Federal Reserve’s interest rate trajectory.
Traders will closely watch US services PMI, trade data and weekly jobless claims, along with inflation figures from the Eurozone, China, Japan and Germany.
Any fresh geopolitical developments or movement in crude oil prices could increase volatility in precious metals, they added.
Following the data release, the probability of a Fed rate hike in September dropped to approximately 50%, down from 67% before the report. Additional support for the market came from comments by Fed Chair Kevin Warsh, who noted easing inflation expectations while reaffirming the regulator’s commitment to price stability.
Reduced inflation risks remain a positive factor for gold. The restoration of commercial traffic through the Strait of Hormuz and progress in US–Iran negotiations have contributed to a further decline in oil prices, supporting sentiment towards the precious metals market.
On the H1 chart, the market broke above the 4,141 USD level and moved higher to 4,190 USD. A decline towards 3,929 USD may follow, with a broad consolidation range forming around 4,060 USD. The Stochastic oscillator supports this scenario, with its signal line below 80 and pointing downwards towards 20, indicating increasing short-term downside pressure.
