Kamal Ghorui
Gold is likely to inch higher gradually towards $4850 in Spot & projections around $5000 also looks achievable. (AI image)
Gold price prediction today: Gold prices are expected to inch higher in the coming days, while silver may see some volatility, says Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers. He shares his outlook for gold and silver prices in the coming days:
- Gold rose past $4,700 an ounce to a record high on Tuesday, while silver also reached an all-time peak, as President Donald Trump’s push to take over Greenland stoked fears of a potential US–Europe trade war.
- Markets await Europe’s response to Trump’s threat to impose tariffs on eight European nations that oppose his Greenland ambitions.
- Investors are also watching for developments from Davos, where Trump is likely to meet with several parties to discuss his plan to take control of the Danish territory.
- The US threat toward its NATO allies has rattled markets, buoying demand for havens and reviving the “Sell America” trade.
- French President Emmanuel Macron intends to request activation of the European Union’s anti-coercion instrument, although German Chancellor Friedrich Merz said he’s trying to get him to tone down his response.
- The Greenland crisis coming hot on the heels of the US seizure of Venezuela’s leader has added further impetus to what was already a breakneck rally in precious metals.
- The Trump administration’s renewed attacks on the Federal Reserve have also aided gold & silver this year, as they’ve revived concerns about the independence of the central bank.
- Investors will also be keeping close tabs on the US Supreme Court’s argument on Trump’s effort to fire Fed Governor Lisa Cook, which is due Wednesday and could be pivotal for the central bank’s continued independence.
Gold & Silver Price Outlook
Weekly View:Gold (CMP $4735/Oz) – Positive Bias towards new highs around $4850 in coming weeksSilver – (CMP $95.25/Oz) – Volatile ride towards 99 – 100 expected in 1 – 2 weeks
- Adding fuel to the rally, the so-called “Sell America” trade appears to be resurfacing. The US dollar has weakened broadly, even against commodity-linked currencies, providing an additional tailwind for precious metals. With renewed fears of a transatlantic trade war, gold is once again finding strong support from geopolitical uncertainty
- Technically, Gold had crossed the December peak in the last few weeks and had evolved out of its consolidative phase, signaling a resurgence of upward momentum.
- Gold is likely to inch higher gradually towards $4850 in Spot & projections around $5000 also looks achievable before Mid-February. The December high at $4535 – 4550 in spot could now serve as an immediate short-term support for the current month.
- Silver on the other hand is on a parabolic rally since December grinding higher towards 98 – 100 $ levels now in spot. With China largely responsible for heightened trading activities in the current month, Silver’s relatively small investable market size, estimated around $5 trillion & roughly 8 – 9 times smaller as compared to gold means incremental capital flows are moving prices disproportionately. However prices still look likely to attain new peaks in coming days while geopolitics boil down among US & EU nations.
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
