Several factors will have an impact on the price of gold.
Gold Price Outlook: As long as the problem of Ukraine Crisis and high inflation remains, the sentiment regarding gold is positive. However, the strengthening of the dollar will have an impact on its price.
The price of gold for some time now (Gold Price Today) is under pressure. to the Federal Reserve (US Federal reservesThe dollar is getting stronger due to the increase in interest rate. This is the reason why there is a situation of pressure on gold. However, gold is also getting support due to buying at lower levels due to rising inflation. Right now it is trading in a range. Gold is currently at a two-month low. What will be the outlook of gold next week and which five important factors will affect its price, let us know about it.
- In a report published in Mint, Sugandha Sachdev, Vice President, Commodity Research, Religare Broking, said that inflation data in the US is going to come next week. A lot depends on the inflation rate. Depending on the inflation data, how much and for how long the Federal Reserve will be active in the interest rate hike.
- Apart from this, the market will also keep an eye on what happens in the dollar. The dollar index is currently at a 20-year high. The dollar has strengthened due to an increase in interest rates. The movement of the dollar has an effect on the price of gold. If the dollar strengthens further, the pressure on the price of gold will increase.
- There is no development in the direction of talks between Russia and Ukraine. The situation of uncertainty remains, due to which the effect of crude oil is also visible. Rapid rise in crude oil will give impetus to inflation and its effect will be on the price of gold. Apart from this, the Chinese government can announce a stimulus to support the economy, which will have a positive effect on the market.
- Whenever inflation rises, the demand for gold increases. It is seen as hedging against inflation. If there is some negative update in Ukraine Crisis, then it will strengthen gold. Until this crisis is over, the demand for gold will continue.
- Axis Securities says that as long as inflation persists and Ukraine Crisis continues, gold prices will remain bullish. Investors would be advised to buy on downside. Every fall is an opportunity.
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