Gold price prediction: Gold rate may go up once again, claim experts

Gold price may have dipped but experts are hopeful that the rate of precious material will go up in coming times. Spot gold was down 1.9 per cent so far this week. U.S. gold futures settled 0.9 per cent lower at $3,315.40.

The dollar index rose 0.1 per cent, making gold more expensive for other currency holders.

Gold at this point in time is pulling back off these recent highs and is in a consolidation period, said David Meger, director of metals trading at High Ridge Futures.


Gold is under slight pressure as we're seeing a little lesser need for safe-haven but it does look like there is going to be significant push back from Trump and that will eventually help prices, said.

Bullion, which thrives in a low-interest rate environment and is also used to hedge against inflation and uncertainty, hit a record high of $3,500.05 in April. Elsewhere, physical gold demand in India was subdued this week, as an uptick in domestic prices and a winding up of the wedding season kept buyers at bay.

On the data front, the U.S. Personal Consumption Expenditures Price index (PCE) saw a year-on-year increase of 2.1 per cent in April, versus a 2.2 per cent forecast. After the report, traders continued to bet that the U.S. central bank will cut its target for short-term borrowing costs in September.

Spot silver fell 1.2 per cent to $32.94, platinum eased 2.5 per cent to $1,055.05 and palladium dropped 0.6 per cent to $967.30.

FAQs

Q1. What is PCE?
A1. The full form of PCE is U.S. Personal Consumption Expenditures Price index.

Q2. What was the highest Gold price?
A2. Gold hit a record high of $3,500.05 in April.