Gold price prediction for April: Gold rate may go up further next month, claim experts
Gold price could hit the $3,100-mark in coming days even though rates were steady on Monday, underpinned by a weaker U.S. dollar and uncertainty around U.S. President Donald Trump's tariff plans, as per a report.
Spot gold was at $3,024.39 an ounce at 1000 (GMT). U.S. gold futures edged 0.3 per cent higher to $3,029.50. «A modestly weaker dollar is probably giving gold a little bit of a tailwind at present,» said Ross Norman, an independent analyst, Reuters reported.
The U.S. dollar was down 0.1 per cent against a basket of other major currencies on Monday, but around 3.4 per cent lower so far this month, making gold less expensive for foreign buyers.
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«A worse-than-feared tariff announcement on April 2 could give bullion bulls a shot in the arm towards striving for the $3,100 mark,» said Han Tan, Exinity Group's chief market analyst.
Gold is traditionally viewed as a hedge during times of geopolitical and economic uncertainty.
«Should risk-on sentiment make a comeback, assuming the U.S. tariff threats prove to be more bark than bite, that could see fleeting forays below $3,000,» Tan said.
After the Federal Reserve held its benchmark interest rate steady last week and indicated two quarter-percentage-point cuts this year, markets will look to the release on Friday of the U.S. Personal Consumption Expenditures (PCE), the central bank's preferred inflation measure.
Gold typically thrives in a low-interest-rate environment and reached an