Precious Metals Weekly Report: Motilal Oswal
According to Motilal Oswal, This week economic docket have a few important ‘look outs’, core durable good order and GDP number is expected from the US, also inflation number from few major economies is also scheduled later this week; if reported positive could metal prices in check.
Motilal Oswal’s report on Precious Metals Weekly
Gold prices along with silver had a fantastic run in the past week and the yellow metal was just shy of fresh record levels following escalating tension between the US and China and expectation of announcement of fresh stimulus package from the US. Silver too breached levels like flowing water hence boosting market participant’s confidence. Deepening negative yields and dollar index trading near one month lows also fueled a frenetic rally in gold boosting the precious metal toward record level. Central bank stimulus measures, rapid increase in COVID-19 cases, US- China trade war and other geo political uncertainties gave wind to the raging forest fire. Supply/demand dislocation is also lending support to both gold and silver prices.
This week economic docket have a few important ‘look outs’, core durable good order and GDP number is expected from the US, also inflation number from few major economies is also scheduled later this week; if reported positive could metal prices in check. Market participants will keep their eyes on FOMC policy meet scheduled later this week where comments and actions announced by the Fed Governor will be important to watch. Although the market participants will continue to keep an eye on the US-China trade relationship. Focus will also be on measures taken by the leaders in order to combat the COVID-19 as it remains a core driver for highly risk-sensitive markets like gold.
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First Published on Jul 31, 2020 01:19 pm