Gold Prices Rise as Tensions Ease, But Analysts Warn of Limited Gains
The gold price has been on the rise as geopolitical tensions ease, but analysts warn that gains may be limited due to uncertainty surrounding global trade and the upcoming US Federal Reserve policy meeting.
Gold prices have recovered from recent lows after a prolonged corrective phase, with buyers gradually regaining control. The recovery is indicated by gold trading above its 20-day moving average, although prices continue to trade below major highs recorded earlier this year.
Manav Modi, Senior Analyst at Motilal Oswal Financial Services Ltd, notes that the Federal Reserve's policy decision will be a key driver for gold prices in the near term. Investors are closely watching US inflation and labour market data, which could influence expectations for future monetary policy.
The Fibonacci retracement levels suggest that gold is currently trading between 50% and 38.2% retracement levels, with Rs 147,700 emerging as the first major upside hurdle. Holding above Rs 143,500 would keep the recovery intact, while a break below Rs 138,000 could signal a deeper correction.