Gold prices reached an all-time high of Rs 1,02,155.00 per 10 grams on August 7, driven by safe-haven demand amid weak U.S. economic indicators, policy uncertainty, and tariff risks. The precious metal has gained 38.00% this year as investors seek protection from economic instability.

Key Factors Supporting the Rally

• Sluggish U.S. job creation
• Easing services activity
• Expectations of Federal Reserve rate cuts
• Potential re-introduction of Trump-era tariffs

Market Projections

Market experts project additional upside of 4-5% from current levels. Manoj Kumar Jain notes that rupee weakness and higher U.S. trade tariffs are driving domestic prices higher, with resistance at Rs 1,02,220.00 and potential targets of Rs 1,03,500.00-1,04,750.00.

Investment Perspective

Ajay Garg highlights that central banks are adding to gold reserves while ETF flows fuel momentum. He recommends a 10-15% allocation to precious metals for long-term investors.

Bullish Outlook

Dr. Renisha Chainani maintains a bullish outlook, citing escalating trade tensions and global economic uncertainty as key factors supporting gold prices.

Global Economic Context

The surge in gold prices comes against a backdrop of weak U.S. economic indicators and ongoing policy uncertainties. As global economic instability persists, gold continues to attract investors seeking a safe haven for their assets.

Conclusion

With gold prices reaching unprecedented levels and analysts projecting further gains, the precious metal remains a focal point for investors navigating the current economic landscape. The combination of domestic and international factors continues to drive the gold rally, making it an asset class to watch in the coming months.

Gold prices continued their upward trajectory for the fifth consecutive session, buoyed by expectations of lower U.S. interest rates and weak June hiring data. The precious metal's persistent rise reflects growing investor confidence in its safe-haven appeal amid economic uncertainties.

Market Performance

Spot gold edged up 0.1% to $3,383.67 per ounce, reaching a near two-week high. This steady climb comes as traders price in two potential rate cuts by the end of the year, with the first expected as early as September.

Factors Driving Gold's Rally

Several key factors are contributing to gold's current rally:

1. Weak June Hiring Data: The soft employment figures have strengthened the case for potential interest rate cuts.

2. Federal Reserve Appointments: President Trump has indicated imminent decisions on Federal Reserve appointments, including a replacement for the resigned Governor Adriana Kugler and his choice for the next Fed chair.

3. Interest Rate Expectations: Lower interest rates typically put pressure on the dollar and bond yields, enhancing the appeal of non-yielding assets like gold.

4. Increased Holdings: The SPDR Gold Trust reported an increase in holdings to 955.94 tonnes, indicating growing investor interest in the precious metal.

Market Outlook

Investors are now turning their attention to upcoming U.S. consumer price index data, which could provide further insights into the Federal Reserve's policy direction. The market's response to this data could significantly influence gold's near-term performance.

Other Precious Metals

While gold continued its ascent, other precious metals showed mixed performance:

As economic indicators continue to shape market expectations, gold remains a focal point for investors seeking stability in uncertain times. The coming days may prove crucial in determining whether this golden streak will continue or face new challenges in the volatile global economic landscape.