Global cues are driving gold spot prices as the yellow metal surged to its all-time highs surpassing Rs 35,000 per 10 gram in some states on June 25.
Geopolitical tensions in the Middle East, US-China trade conflict, uncertainty around Brexit and the global slowdown have helped the safe-haven metal embark on its latest rally.
Globally, too, the price hovered near $1,400 on June 27 after slipping about 1 percent from its six-year peak on expectations of a sharp rate cut by the US Fed in its next meeting.
Gold was trading lower by 0.2 percent at $1,406.20 per ounce at Nymex.
Analysts believe that the stimulus provided by the Fed would trigger the next spike in prices.
“As the present pressures do not seem to be ebbing, the market is not ruling out a further upward movement in the range of $1,450 in the next few months that can be the next testing point. It is largely expected now that the Fed will lower rates in its next meeting and can be the next trigger for a spike in price, though the Fed Chief Jerome Powell has reiterated that it cannot be taken to be a ‘given’,” Care Ratings said in a report.
The August Gold futures contract was at $ 1,410 on June 26, the rating agency said. The December contract was at $1,420 while June 2020 was at $1,439, it added.
However, some analysts are viewing the present rally with caution as the upcoming G-20 Summit on June 28-29 may provide some respite in regard to the US-Iran and US-China relations. According to Care Ratings, the outcome of G-2O Summit will have a bearing on the price of gold.
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