Gold Price Diverges from Expectations as Risk-On Rotation Takes Hold
Gold prices took an unexpected turn on Friday, falling 0.57% to Rs 1,54,300 despite dovish comments from Fed Governor Christopher Waller and ongoing Iran tension. These factors usually support gold prices, leading many to wonder why the metal didn't perform as expected.
Ankit Jaiswal of Univest attributes this divergence to a broader risk-on rotation out of defensive assets as equities rallied on genuinely positive news. This rotation pulled capital away from gold positions faster than the rate-driven tailwind could offset, suggesting that the decline was not necessarily a sign of weakness in gold itself.
Looking ahead to the gold prediction for tomorrow, Jaiswal notes that further dovish Fed signals and resolution or escalation of the Iran situation will be key drivers. If the weekend brings more dovish commentary without resolving the tension, gold's safe haven case may reassert itself, pushing prices back toward recent highs.
For now, support levels stand at Rs 1,52,500, while resistance is at Rs 1,56,000. Titan Company, with its significant jewellery retail exposure, tends to move inversely to sharp gold price swings in the near term.