Gold prices made headlines trading at new all-time highs and this surge is largely attributed to a blend of global and domestic factors. On the international front, escalating trade tensions have fueled a global rush towards safe-haven assets.
When political and economic uncertainty rises, investors traditionally flock to gold, a move that provides a buffer against market volatility. Domestically, the continued weakening of the Indian Rupee against the US dollar has further amplified this demand. A weaker rupee makes imported gold more expensive, which in turn pushes domestic prices higher.
According to a Kedia Advisory Report on Bullion, the bullish sentiment for gold has been significantly boosted by the rising expectations of a September rate cut by the US Federal Reserve. With traders pricing in an 86% chance of a 25 basis points cut, the outlook for the yellow metal remains positive. The report also notes that gold has key resistance at Rs 1,06,400 to Rs 1,08,000, while a strong support level is established at Rs 1,02,000.
