According to Motilal Oswal, This week there are a few important economic data points expected from U.S which could trigger volatility in precious metal.
Motilal Oswal's report on Precious Metals Weekly
Gold prices eked out a tiny gain on the last day of the week to halt a third consecutive slide, but the precious metal’s advance for the day wasn’t sufficient to avoid the first back-to-back weekly declines since the COVID-19 pandemic began in March. Gold prices marked a high of $2024 and a low of $1916, same way silver prices opened and closed at almost same levels although there was some volatility seen, it marked a high of $18.25 and low of $17.42. Resurgence in dollar and yields gave investors some pause in buying bullion as a stronger dollar can make gold comparatively more expensive to overseas investors. As suggested last week, cautious approach should be taken into consideration, although overall long term picture remains positive.
Outlook
This week there are a few important economic data points expected from U.S which could trigger volatility in precious metal. Core durable goods, Core PCE index and Q2 GDP is scheduled on the calendar this week; any data if reported better than the expectations could put pressure on gold prices. Looking ahead, gold traders will continue to monitor “the possible emergence of a ‘second wave’ of the virus across Europe and Asia. Traders will also watch how the talk of economic stimulus unfolds in the US. Investors will also continue to keep an eye on the US-China trade relationship and other uncertainties hovering in the market.
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