Gold may trade between $1,880-1,960 in the near term, says Emkay Wealth; here's what the brokerage says

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Wealth Management titled "Navigator". According to the study, gold is presently trading at US$ 1960 and has fluctuated between US$ 1880 and US$ 1960 over the past month. Gold ETFs witnessed outflows over the previous two months, but in recent weeks, a small amount of inflows have started to trickle in, which has aided the price of the yellow metal, said Emkay Wealth in its report.The direction of the US Dollar and the trajectory of US interest rates are two fundamental variables that are intricately linked to the movement in gold.

Due to the expectation of rising interest rates, the currency outlook has been favourable. The US unemployment claims report exceeded analyst estimates, proving that the concerns about the US economy's performance and the likelihood of significant economic contraction were unfounded. The economic sluggishness, which is most prevalent in several wealthy countries, is what traders are most worried about, and its severity is unlikely to increase demand for gold, according to the report.

The Fed Chairman's final speech makes clear that rates must be raised to control inflation, and he acknowledges the possibility of short-term below-trend growth as a result of interest rate moves. In the past three to five years, a variety of reasons have allowed investors to include gold in their portfolios. These include changes in geopolitics, interest rates, the likelihood of economic growth, the requirement to diversify portfolios, the increase in price level, etc.