Gold price prediction: Experts predict gold rate to hit $4,300-mark

Gold price was set for a fifth straight weekly gain as gold rate edged higher on Friday. Spot gold was up 0.1 per cent at $3,647.68 per ounce. U.S. gold futures for December delivery rose 0.1 per cent to $3,679.90. Gold rate is up by 0.2 per cent so far this week. Gold price was buoyed by the Federal Reserve's first rate cut of the year, while investors awaited further cues on the U.S. policy outlook.

U.S. Fed policy outlook remains the primary driving force for bullion bugs, even as precious metals enjoy tremendous support from central bank purchases and safe-haven demand; any dips below $3,600 are bound to be short-lived, said Han Tan, chief market analyst at Nemo.money.

Non-yielding bullion, which tends to perform well in a low-interest-rate environment, hit a record high of $3,707.40 on Wednesday. It has risen about 39 per cent so far this year.


Traders are pricing in a 92 per cent chance of another 25-bps cut at the Fed's October meeting, according to CME Group's FedWatch tool.

"Key thing that is driving gold prices is the continued dollar depreciation as year-to-date it has been very strong and we believe the pattern to continue," said Nitesh Shah, commodities strategist, WisdomTree. "Gold prices are well positioned for a significant gain, and we expect this time next year gold prices to be around $4,300," Shah said.

Spot silver rose 0.7 per cent to $42.06 per ounce and was headed for a weekly gain. Platinum fell 0.1 per cent to $1,382.45, while Palladium was up 0.3 per cent at $1,154.25.

FAQs

Q1. What are silver, platinum prices?
A1. Spot silver rose 0.7 per cent to $42.06 per ounce and was headed for a weekly gain. Platinum fell 0.1 per cent to $1,382.45, while Palladium was up 0.3 per cent at $1,154.25.

Q2. Will there be more interest rate cut?
A2. Traders are pricing in a 92 per cent chance of another 25-bps cut at the Fed's October meeting, according to CME Group's FedWatch tool.