Gold price prediction: Analysts forecast gold rates for August
was down throughout the previous week as
gold rate
was down by over one per cent to $3,335.60. Gold prices are expected to witness further consolidation in the coming week as investors brace for a slew of events, including the US Federal Open Market Committee (FOMC) meeting's outcome, to global trade negotiations, analysts said. Gold will also face tough challenges from developments related to the August 1 trade deal deadline. August 1 marks the end of the suspension period of Trump tariffs imposed on dozens of countries, including India.
Gold Rate to Remain Low
On the global front, Comex gold futures for August delivery slipped by USD 37.90 or 1.12 per cent to close at USD 3,335.60 per ounce in New York.
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N S Ramaswamy, Head of Commodity & CRM,
Ventura
, said gold saw a sharp drop from USD 3,438 to USD 3,335.60 per ounce amid an extended tariff truce between the US and China, which has added to this sentiment.
Gold may stay weak as hopes of more trade deals or tariff delays before the August 1 deadline, Ramaswamy stated.
Safe haven demand seems to have vanished and has lifted the US stocks and Treasury yields, buoyed by strong AI-linked corporate earnings and risk-on appetite. The next move in gold will depend on whether the US Fed signals a more dovish stance or if tensions flare again on the tariff front, he said.
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Ramaswamy added that a possible resumption of Chinese central bank gold buying could offer support later in 2025, but for now, the market may remain in a phase of consolidation.
When will Gold Price Rise?
Gold prices may see some consolidation in the week ahead as the focus will be on the outcome of trade negotiations between the US-Euro zone and the US-China along the policy meeting of the US Federal Reserve and Bank of Japan, both of them expected to keep interest rates on hold. However, their official commentary will be closely watched, Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services, said.
Gold prices have had a good ride in July; however, the correction was driven by lower safe-haven demand and expectations of a breakthrough in trade deals, Prathamesh Mallya, DVP - Research, Non-Agri Commodities and Currencies at Angel One, said.
Mallya expects that precious metal prices to remain under pressure and added that the US GDP data will also play a critical role in shaping gold's trajectory in the short term.
FAQs
Q1. What is the current gold price?
A1. Globally, spot gold is trading around $3,348–$3,350 per ounce, well above the $3,300 mark reached earlier in July. Analysts noted record highs of about $3,500 per ounce in April, with sustained demand from investors and central banks pushing prices higher.
Q2. What are experts forecasting for gold prices in 2025?
A2. HSBC has revised its 2025 average forecast upward to $3,215/oz (up from $3,015), with a year-end projection of $3,175/oz and a 2026 forecast of $3,025/oz. It anticipates gold trading between $3,100 and $3,600/oz for the rest of the year. Other institutions offer similarly bullish targets: Citi sees $3,000/oz, Goldman Sachs targets $3,100/oz, and UBS projects $3,200/oz in 2025. Some long-range forecasts even suggest $4,000/oz by mid-2026 if current geopolitical and economic stresses persist.
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