Gold Sees Positive Bias as Brent Crude Oil Prices May Slide Towards $80 Per Barrel
Gold prices are expected to maintain their positive momentum due to a weaker US dollar and fading expectations of a near-term interest rate hike. This is according to a report from Kotak Neo, which also notes that Brent crude oil prices may slide towards $80 per barrel due to strong Gulf exports and weak demand.
Spot gold has been rising for two weeks, increasing 0.5% intraday before paring gains to around $4,400 an ounce. Silver outperformed, climbing 1.6% to $65.73 an ounce. The key catalyst behind the rise in gold prices was softer US retail sales and weaker consumer sentiment, which pressured the dollar and reduced expectations of a September Fed hike.
Geopolitical tensions, including renewed attacks on the Strait of Hormuz and possible US measures against Iran, continued to support bullion. However, Kotak notes that 'bias remains positive, but gains require a sustained break above $4,400; renewed energy inflation or higher yields could trigger consolidation.'