Liquidity dynamics have also played a role. In volatile markets, investors often sell gold and silver to raise cash or meet margin calls, creating temporary downward pressure on precious metals.
The West Asia conflict has changed the bullish narrative around Gold. High oil prices, US recession-cum-inflationary fears, and fading Fed rate cut bets weigh on the sentiment, says YES Securities.
Gold and Asian equities rebounded on Tuesday as trading conditions steadied following sharp swings in metals markets, with sentiment helped by stronger-than-expected US factory data
Spot gold fell as much as 6.3 per cent on Monday while Silver swung sharply, dropping to around $75 an ounce having earlier climbed as much as 3.2 per cent
Gold has surged past $5,000 an ounce as geopolitical tensions, trade uncertainty, expectations of lower US Fed interest rates and sustained global central bank buying combine to support prices
Gold price outlook: Huge volatility and choppiness are expected to continue in gold as traders navigate the maze of data and events in the very short term
Buoyed by a dovish FOMC outcome, spot gold surged on December 11 extending its gains to the second day. At the time of writing this article, spot gold was trading with a gain of 1.3 per cent at $4282
Christopher Wood, global head of equity strategy at Jefferies expects gold prices to hit $6,600/oz going ahead, up 57 per cent from the current levels.
Gold outlook: Spot gold continues to find robust support from a confluence of macroeconomic factors, chief among them being the rapidly deteriorating fiscal landscape in major economies.
In early 1980, investors, according to Capitalmind, were inspired by the stellar returns of the 1970s. If they invested in gold back then, they would have faced two decades of negative returns.
Analysts at brokerage firm Motilal Oswal Financial Services maintain a positive long-term outlook on gold, recommending investors to "buy on dips" with a target price of ₹1,06,000
