Gold price prediction today: Will the gold price rally sustain? Here’s the outlook
Gold price prediction today: Gold prices are extending their rally this week, and remain well supported in the long term, says Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers. The expert lists out the top factors that will decide direction of gold prices in the coming days:Gold was seen struggling for direction this week, with overall trading activity subdued in the absence of fresh market-moving catalysts. It briefly slipped below the $5,000 psychological level during the early session today, but is still holding above the same.Global equities extending their rally this week is seen weighing on the Bullion in the near term. At the same time, a broadly weaker US Dollar (USD) and softer US Treasury yields are helping to cushion the downside, keeping losses limited and keeping Gold rangebound in near term.Gold witnessed a sharp two-way move last week, initially extending its correction from record highs as profit booking, higher exchange margins and a rebound in the U.S. dollar triggered heavy liquidation, before stabilizing near key technical support around the 50-day moving average. Spot prices rebounded nearly 4% on Friday to close near $4,965 after successfully defending the $4,700–4,750 demand zone, indicating institutional buying and bargain hunting rather than panic selling, while geopolitical risk premiums eased slightly amid improving US–Iran diplomatic signals.Central Bank Demand Still Strong: China’s PBOC added gold for the 15th consecutive month, reinforcing sustained official-sector buying — a key structural pillar behind gold’s multi-year rally and a strong floor during corrections.Structurally, gold remains well supported in the long term by central-bank buying (700–750 tonnes expected in 2026), ETF inflows, reserve diversification and easing-rate expectations.The yellow metal is trying to build a base, with $5,000 now the pivotal near-term pivot, holding above it would strengthen the case for a move toward resistance at $5,090–$5,140, while failure risks a slide back toward $4,750 support.Markets are focused on US jobs and inflation data for clarity on Fed rate cuts, dollar direction, and lingering concerns over Fed independence, while continued central-bank buying, especially from China, keeps the broader bullish structure intact despite near-term range trading.Traders showed a muted reaction to the latest US Retail Sales figures, with Headline Retail Sales flat in December. Attention now turns to the delayed Nonfarm Payrolls (NFP) report on Wednesday, followed by the Consumer Price Index (CPI) release on Friday.China has urged domestic banks to curb their exposure to US Treasuries on market-risk concerns, Bloomberg News reported on Monday. In response, US Treasury yields remain under pressure across the curve, with the benchmark 10-year yield extending its decline for a second straight day and hovering near 4.18%.(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)
