Gold Price prediction: Gold rates falls big on Monday, Check this week's forecast

Gold price fell on Monday as bullion experts have claimed that sellers have adopted cautious approaches. Spot gold lost 0.2 per cent to $3,356.91 per ounce after rising more than 2 per cent on Friday. However, U.S. gold futures gained 0.3 per cent to $3,410.20. Gold rates are down due to slightly firmer U.S. Treasury yields and profit-taking following last week's sharp rally driven by weak U.S. jobs data. The benchmark 10-year Treasury yield ticked higher from Friday's five-week low, dulling non-yielding bullion's appeal.

Gold Rate Forecast

The market will remain range bound with today's pullback being in line with some the reversals seen across markets following Friday's big moves, especially yields which are a tad firmer and stocks which have seen a rebound," Saxo Bank's head of commodity strategy, Ole Hansen, said.


A rebound in stock markets, alongside a stabilizing dollar, also reflected a buy-the-dip mood following last week's payrolls-driven retreat.

U.S. Labor Department data showed nonfarm payrolls rose by 73,000 in July after June's gain was revised down to 14,000. The weaker numbers bolstered expectations for a Federal Reserve rate cut in September, with CME's FedWatch tool showing an 86 per cent probability.

Gold Price Prediction

While gold is struggling to break higher, stagflation risks and prospects of further rate cuts are keeping sellers cautious, with a move above $3,430 likely to spark momentum buying, Hansen said.

Meanwhile, U.S. President Donald Trump said he would soon nominate a candidate to fill a vacant Fed seat after Governor Adriana Kugler early resignation.

On the trade front, Trump's newly imposed tariffs on multiple countries are expected to remain during ongoing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday.

Citi raised its three-month gold price forecast to $3,500 per ounce from $3,300, citing a deteriorating near-term outlook for U.S. growth and inflation.

Spot silver rose 0.3 per cent to $37.14 per ounce, platinum fell 0.3 per cent to $1,311.38 and palladium was down 0.8 per cent at $1,199.08.

FAQs

Q1. What are current gold prices?
A1. Spot gold lost 0.2 per cent to $3,356.91 per ounce after rising more than 2 per cent on Friday. However, U.S. gold futures gained 0.3 per cent to $3,410.20.

Q2. What are current prices of silver and platinum?
A2. Spot silver rose 0.3 per cent to $37.14 per ounce, platinum fell 0.3 per cent to $1,311.38 and palladium was down 0.8 per cent at $1,199.08.