Gold may trade with positive bias this week amid tariff worries, interest rate cut hopes
is likely to trade with a positive bias in the coming week, supported by rising expectations of interest rate cuts by the Federal Reserve, fresh volatility due to the US administration's aggressive trade stance, and continued safe-haven demand amid a softening dollar, analysts said.
Investors will monitor PMI data from the EU and the UK this week, along with speeches by US Fed officials. The US jobless claims data will also be tracked for cues on the Fed's interest rate path.
Explore courses from Top Institutes in
Please select course:
Select a Course Category
others
Cybersecurity
Project Management
Leadership
healthcare
Operations Management
Design Thinking
Data Analytics
Digital Marketing
Product Management
Management
Data Science
PGDM
MBA
Artificial Intelligence
MCA
Degree
Data Science
Technology
Others
Healthcare
Public Policy
CXO
Finance
Skills you'll gain:
Duration:
16 Weeks
Indian School of Business
CERT - ISB Cybersecurity for Leaders Program India
Starts on
undefined
Get Details
However, the focus is likely to shift toward the economic fallout of US administration's trade restrictions on 70 countries which may lead to supply chain realignments, inflationary pressure and fresh interest in safe-haven assets like gold, they added.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
'I Can Finally Move With Confidence Again' – Thanks to This Simple Product
Wellnee
Undo
"In the week ahead,
gold prices
may continue to trade steady but with a positive bias as focus now will turn on the impact of the US trade tariffs in the American economy and likely trade disruption in the global market as most countries would be looking to either negotiate the trade terms or look for an alternative market to sell their products or services.
"Also, very few data are lined up in the week, which means that volatility may increase in the coming trading sessions," Pranav Mer, Vice President, EBG, Commodity & Currency Research at JM Financial Services, said.
Live Events
Further, Mer stated that gold prices rallied sharply on Friday and closed the week in positive, following a weaker US payrolls report that boosted expectation of an interest rate cut by the Federal Reserve and a drop in the dollar index. Also, recent tariff's announced by President Donald Trump raised safe-haven demand.
Last week, gold futures for October delivery rose Rs 971 or 0.98 per cent on the Multi-Commodity Exchange (MCX). On the global front, COMEX gold futures rose by USD 51 or 1.52 per cent to close at USD 3,413.80 per ounce on Saturday.
However, domestic and global bullion trends have shown some divergence.
According to Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies at Angel One, the correction in MCX gold prices was relatively muted due to the rupee's depreciation.
"MCX gold prices made highs of Rs 1,00,410 per 10 grams and corrected lower towards Rs 98,047 per 10 grams, down by nearly 2.5 per cent. The fall in gold prices was lower as compared to the global bullion prices on account of rupee depreciation by around Rs 86.5 to Rs 87.5 against the US Dollar in the same time period," Mallya said.
Moreover, the tariff imposition by the US on Indian imports to 25 per cent added spice to the global macro situation and the trade agreement between the United States and the European Union which limited further gains in gold prices, he added.
Adding to the dynamics was the shift in domestic physical demand. NS Ramaswamy, Head of Commodities & CRM at Ventura Securities, said, "India's domestic gold had generated physical buying after a pullback in prices from Rs 1,00,555 per 10 grams last week to Rs 97,700 per 10 grams".
"Supplementing the renewed buying interest was the reduction in discounts (USD 15 last week saw only USD 7 as discounts) offered by Indian gold dealers in the domestic market. Due to the drop in international prices, jewellers replenished inventory, eventually offsetting the impact due to rupee depreciation," NS Ramaswamy said.
Ramaswamy also pointed out that gold's volatility around July 31 and August 1 sessions was driven by renewed trade policy uncertainty and hawkish Fed expectations, which initially pressured gold before pushing it higher.
"The executive order imposing higher tariffs led to a quick turnaround in the dollar index, which retreated from 100.06 to a low of 98.47-level. This allowed gold prices to recover sharply and enter a bullish zone.
"Gold has now changed its course from the consolidation mode of last week and now awaits an upside break from USD 3,440-level to claim its bullish territory," he said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Deccan Herald
19 minutes ago
- Deccan Herald
Adani Ports & SEZ Q1 profit rises 6.54% to Rs 3,310.60 crore
Expenses also rose to Rs 5,731.88 crore in the period from Rs 4,238.94 crore a year ago.
NDTV
19 minutes ago
- NDTV
Adani Ports Clocks 21% Revenue Jump At Rs 9,126 Crore In First Quarter
Ahmedabad: Adani Ports and Special Economic Zone Limited (APSEZ) on Tuesday reported a 21 per cent jump in quarterly revenue at Rs 9,126 crore, driven by a 2 times jump in logistics and a 2.9 times increase in marine. Net profit grew 7 per cent to Rs 3,311 crore in the April-June quarter, from Rs 3,107 crore in the same quarter last fiscal. Cargo volume reached 121 million metric tonnes (MMT) from 109 MMT (11 per cent growth) as all-India cargo market share increased to 27.8 per cent in Q1 FY26 from 27.2 per cent in Q1 FY25. Container market share stood at 45.2 per cent (45.9% in Q1 FY25). "This quarter's 21 per cent revenue growth is anchored by extraordinary momentum in our Logistics and Marine businesses, which grew 2 times and 2.9 times, respectively," said Ashwani Gupta, Whole-time Director and CEO, APSEZ. Logistics grew to Rs 1,169 crore from Rs 571 crore in the quarter, while marine reached Rs 541 crore from Rs 188 crore with 118 vessels. "These are no longer ancillary verticals -- they are reshaping the contours of our future-ready ports ecosystem. With expanding Trucking and International Freight Network services and a fast-growing, diversified marine fleet in the MEASA region, we are deepening our integrated transport utility approach and extending our value chain from port gate to customer gate," Gupta said. Coupled with cargo growth and market share gains in the domestic ports business, and higher revenue and improving EBITDA in international ports, "we remain firmly on track to meet our FY26 guidance", he added. In Q1, the Adani Group's flagship company commenced operations at the Colombo West International Terminal (CWIT), a fully automated, natural deep-water port. CWIT is a public-private partnership under a 35-year BOT agreement. Upon full completion, CWIT will handle c. 3.2m TEUs annually. "Dhamra port opened a new export berth. Also commenced construction of two new berths that will increase port capacity to 92 MMT. Won a liquid cargo handling contract from a large carbon black manufacturer. Inaugurated a warehouse for a large steel manufacturer to house cold rolled coils," the company informed. Vizhinjam port completed its first year and achieved 100 per cent utilisation in its ninth month of operation. The company commenced construction of Phase 2 at the port. "The Board has approved the acquisition of NQXT Port, Australia. NQXT is a natural deep-water, multi-user export terminal with a nameplate capacity of 50 MTPA. The transaction is subject to regulatory approvals," Adani Ports said.
Indian Express
19 minutes ago
- Indian Express
Pune Inc: Pune mechanical engineer's tryst with bees that caught the attention of PM Modi
It was just another summer afternoon in 2014, and Amit Godse, a mechanical engineer with a multinational company, was lazing around his flat in Pune, unaware that his life was about to change. It began with people in his housing complex killing bees in a large hive using pest control. Within a fraction of a second, millions of bees were killed. 'At that time, I felt that, as humans, we want honey but not bees. I wondered how long this model of working with bees will sustain,' says Godse. Steered by the thought that 'someone should do something about this', Godse decided to promote ethical honey harvesting that does not harm bees. He began travelling across India, stayed in various tribal hamlets, and got himself trained in sustainably handling bees. Ultimately, Godse quit his job and started his own company, Bee Basket, in 2016. The business model of Bee Basket is unique. 'Our major focus is on conservation, creating bee friends, and saving the bees. You might find many beekeepers around India, but you won't find bee rescuers or bee conservationists in India in a big way. The services of Bee Basket are eco-handling of bee hives, conducting workshops, and retailing bee-based products,' explains Godse. Godse's company mimics nature, where bees are considered pollinators rather than honey producers. 'My purpose was to work with honeybees. At that time, I didn't have any data regarding bees. I just jumped in to save them,' he says. On May 20, the UN's designated World Bee Day, the office of Ravindra Sathe, Chairman, Maharashtra State Khadi and Village Industries Board, received a call from the office of the Chief Minister. The call came following a query from the Prime Minister's Office (PMO) about Godse, who had rescued more than 16,000 bee hives by then. 'The PMO had taken cognisance of Amit Godse's work,' says Sathe. Godse's initiative received a shout-out from Prime Minister Narendra Modi. In the 122nd episode of Mann ki Baat in June, the Prime Minister had said, 'The protection of honey bees is not only important for the ecology but also our farming and future generations…. Amit naam ke ek yuva ne tay kiya ki bees ko hatana nahin, unhey bachana chahiye (A young person named Amit decided that one should not kill bees but save them).' Sathe says that the Maharashtra government is planning to conduct a first-of-its-kind workshop on rescuing bees in Pune and other cities in the state. 'The workshop in Pune will be held in the last week of September. We want to start a movement in Maharashtra as the number of bee hives in urban spaces has been increasing over the years,' says Sathe, adding that when he took over as the chairman two-and-a-half years ago, he was not aware of the nature of bees and their importance. 'Amit is doing remarkable work in bee protection, as most people in cities are not aware of bees,' says Sathe. After the first year of the launch of the company, Godse started charging people Rs 1,500 to remove bee hives, depending on accessibility. A few people were skeptical about Godse's eco-friendly methods, but most preferred the non-violent way of getting rid of hives. Once word got around, clients began to share his number around.. 'Our company is growing organically,' says Godse, who adds that cities, with balcony gardens and enough water bodies, have bigger bee populations than many villages where use of pesticides and insecticides has destroyed their habitat. Now, the government of Maharashtra has approached Godse to create a community of bee-friends, ie, people who can rescue the bees. 'Bee-friends could be those who spread awareness about them, provide space in their farms and bungalows for rescued bees, or take care of these insects, among others,' says Godse. Godse says that if he can train 20-25 people in the Pune district to be good bee rescuers, it would be a good number to begin with. 'In every city or taluka, if we have around 50 bee-friends, then it would be a good start,' he says. The target is to have bee-friends across Maharashtra in two years. The most challenging aspect of his mission, he says, is that the pest control companies continue to kill bees in a big way. There is also an urgent need to find places to relocate bees, especially wild bees or the dorsata bees, because people feel these bees are very ferocious, states Godse. 'In cities, many times we need to handle very erratic people who want to get rid of bees within seconds, as it happens with pest control. But, bees won't leave that immediately. They require two to three days to leave the place, and people need to give them time,' says Godse. To the detractors, he asks: 'When you eat on a plate, one-third of your food comes with the help of bees only. What will happen if they die?' Dipanita Nath is interested in the climate crisis and sustainability. She has written extensively on social trends, heritage, theatre and startups. She has worked with major news organizations such as Hindustan Times, The Times of India and Mint. ... Read More
