Gold price prediction today: Should you chase rally or buy gold on dips?
Gold prices recently rallied due to economic factors and geopolitical tensions, including potential developments in the Strait of Hormuz. Analysts suggest a 'buy on dips' strategy rather than chasing the current price surge.
Why it matters
Investors are closely monitoring the intersection of US monetary policy, Iranian geopolitical maneuvers, and commodity market volatility.
Gold price prediction today: Instead of chasing the rally, buying the dips may work as a better strategy for gold right now, says Praveen Singh, Head Currencies and Commodities, Mirae Asset ShareKhan.Boosted by dovish FOMC, possibility of a Hormuz deal and disappointing US nonfarm payroll report for July, spot gold staged a huge rally in the week ending August 7.The metal broke free of its seven-week-old consolidation range of $3950-$4200 to close with a weekly gain of 7.31% at $4342 -- its largest weekly gain since January. The yellow metal has been supported by China extending its gold buying spree, too.At the time of writing this article on the night of August 10, the shiny metal was trading steady at $4345.Geopolitics and oil:Iran and Oman are said to be close to a deal that will lead to a partial reopening of the Strait of Hormuz.
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