Gold is passing through a very critical phase as we are seeing lots of fluctuations in its price. Gold prices in USA and Gold prices in Pakistan were influenced by Geo-political tussle,weak US economic and UK elections .These factors have caused fall in the gold prices per gram in the last week. Gold prices in USA started the week at $ 1282/ounce and ended the week at $ 1271/ounce.
Gold prices in Pakistan started the week at Rs 50415/tola and ended the week at Rs 49950/ounce.Following are the factors to consider while analyzing the fluctuations in the gold prices in USA and Gold prices in Pakistan.
Geo Political Tensions
The Geo-political tensions have really helped the Gold prices in USA.Gold prices crossed the $1,290/ounce due to weak USD and tensions between middle eastern countries . Gold price forecast for the gold prices in USA shows that prices may cross $1,300/ounce in upcoming week.
UK elections played an important role in affecting the gold prices per gram. Prime Minister Theresa failed to get clear majority in the elections and it caused pound to slide further in the international Forex markets.
Moreover,it also helped dollar to improve its position against different basket of currencies. The US dollar index reached its highest point since May during the week. The US dollar index closed its week at 97.24.
Market analysts are expecting a mixed trend for the gold market in the current week.The fall in value of British pound ,increase in the interest rates and Geo-political tensions may affect the stock markets all over the world.Any uncertainty in the stock markets will certainly improve the gold demand in the market. Therefore,it will increase the gold prices in USA .
Qatar and Saudi Arabia foreign relations are currently in a very bad state. Saudi Arabia is blaming Qatar for supporting terrorist organizations.The tensions in the middle east may increase the demand of safe haven assets like gold in the international market.
Federal reserve is all ready to increase the interest rates in its upcoming meeting.Although US economy is not in its perfect condition .
According to the economic experts,it will be very interesting to see the impact of the interest rates on the gold prices in USA.Fed is very determined to tighten the monetary policy for the betterment of the economy.
The people at fed are really hopeful of the future prospects of the economy as they see a great potential in the economy. However,some economic experts are also criticizing the federal reserve policies as they are expecting serious problems for the economy in the near future.They are advising federal reserve to devise policies to tackle these problems in an effective way possible.
Federal reserve has to give solid reasons for the increase in the interest rates.The increase in the interest rates will put more pressure on the gold prices in USA and gold prices in Pakistan.
At the end we can say that gold market is still offering great opportunities for the investors.The gold investors should concentrate on using day trading strategies for maximizing their investment gains.Day trading strategies are very beneficial for earning profit in fluctuating investment markets.