Spot gold is likely to rise gradually to $4850 and it is estimated that around $5000 can also be achieved. (AI image)
gold price prediction Today: gold prices Manish Sharma, AVP (Commodities and Currency), Anand Rathi Shares and Stock Brokers, says that prices are expected to increase further in the coming days, while some fluctuations may be seen in silver. He shared his outlook on gold and silver prices in the coming days:
- Gold hit a record high on Tuesday, surpassing $4,700 an ounce, while silver also hit an all-time peak, as President Donald Trump’s push to annex Greenland stoked fears of a potential US-Europe trade war.
- Markets are awaiting Europe’s response to Trump’s threat to impose tariffs on eight European countries that oppose his Greenland ambitions.
- Investors are also keeping an eye on developments in Davos, where Trump is expected to meet with multiple parties to discuss his plan to take control of the Danish territory.
- US threats towards its NATO allies have roiled markets, increased demand for havens and revived the “Sell America” trade.
- French President Emmanuel Macron wants to urge the EU to activate its anti-coercion tool, although German Chancellor Friedrich Merz said he was trying to tone down his response.
- The deepening of the Greenland crisis on the heels of the US seizure of Venezuela’s leader has further fueled an already dangerous rally in the precious metals.
- Gold and silver have also been helped this year by renewed attacks on the Federal Reserve by the Trump administration, as they have revived concerns about the central bank’s independence.
- Investors will also keep a close eye on the US Supreme Court arguments over Trump’s effort to fire Fed Governor Lisa Cook, which is scheduled to take place on Wednesday and could be crucial to the central bank’s continued independence.
Sleep & silver price outlook
Weekly View:Gold (CMP $4735/oz) – Positive trend towards new highs around $4850 in the coming weeksSilver – (CMP $95.25/oz) – Volatile rise towards 99 – 100 expected in 1 – 2 weeks
- Adding fuel to the rally, the so-called “Sell America” trade appears to be resurgent. The US dollar has also broadly weakened against commodity-linked currencies, providing an additional tailwind for the precious metals. Gold is once again finding strong support from geopolitical uncertainty, with new fears of a transatlantic trade war
- Technically, gold had surpassed the December peak over the past few weeks and exited its consolidation phase, indicating a resurgence of upward momentum.
- Spot gold is likely to rise gradually to $4850 and is estimated to reach around $5000 before mid-February. The December high at $4535 – 4550 spot may now serve as immediate short-term support for the current month.
- On the other hand, silver has been on a parabolic rise since December and has now reached the level of $98-100 at the spot level. While China is largely responsible for the increased trading activity in the current month, silver’s relatively small investable market size, at around $5 trillion and approximately 8 – 9 times smaller than gold, means that incremental capital inflows are disproportionately driving prices higher. However, prices are still likely to hit new highs in the coming days while geopolitics between the US and EU countries comes to a boil.
(Disclaimer: The recommendations and views given by experts on the stock market, other asset classes or personal finance management are their own. These opinions do not represent the views of The Times of India)