Gold prices were trading flat on Tuesday, August 13. On the Multi Commodity Exchange (MCX), 24 karat gold was available at ₹70,059 per 10 grams

Despite the slight dip, gold has seen a gain of ₹800 per 10 grams in the last two days.

Deveya Gaglani, Research Analyst – Commodities at Axis Securities, highlighted that MCX Gold prices surged on anticipation of a rate cut and positive inflation data.

He noted, “MCX gold prices rally was driven by expectations of a rate cut, as the yield curve continued to narrow ahead of crucial CPI data set to be released later this week. A downtick in the inflation data will act as a silver lining for precious metals, and we expect it to head higher.”

Additionally, ongoing geopolitical tension continues to benefit gold because of its safe-haven appeal.

“Spot gold is currently hovering near its lifetime high of $2,483 per ounce. A breakout and weekly close above this level will be a bullish signal, potentially driving prices towards $2,550 per ounce. In MCX, we may expect a level of ₹72,000 per 10 grams in the coming months,” he said.

Globally, Tim Waterer, Chief Market Analyst at KCM Trade believes that softer US inflation data could reignite hopes of an aggressive rate cut from the Federal Reserve in September.

This will benefit

gold prices.

Traders are now awaiting the July US producer price index (PPI) figures due later today and consumer price index (CPI) numbers on Wednesday.

These data points will help gauge the likelihood of significant rate cuts, which could further impact gold prices.

Renisha Chainani, Head of Research at Augmont – Gold For All, explained how geopolitical risks are influencing gold prices.

She said, “According to a White House spokesperson, Iran may conduct a significant strike on Israel this week, potentially disrupting ongoing Gaza peace talks set for August 15. Gold continues its uptrend and is expected to soon touch new highs above $2,500 per ounce (₹71,000 per 10 grams).”

Investment strategy

For investors, the current market conditions suggest watching gold prices closely over the next few days.

A potential dip in prices could present a buying opportunity, especially if the Federal Reserve signals a rate cut.

Experts also suggest diversifying into silver, which has seen a downtrend, as a balanced investment approach in this uncertain market environment.