“There is so much uncertainty in the market place. I think there is a risk that gold could go again below $1,700 per ounce. I think that level will be very well defended. But I think we could see $1,700 per ounce or high $1,600 per ounce going forward as a low,” said Philip Newman, Managing Director of Metals Focus Limited in an interview with CNBC-TV18.
“As we move forward or move through the backend of this year into early next year, gold getting back up above $1,800 per ounce is quite possible,” he said.
Gold prices today: Yellow metal loses shine even as global benchmarks held ground on back of strong dollar
A slew of rate hikes by the US Federal Reserve has imposed pressure on central banks around the world to follow suit and hike rates in order to counter the rising inflation and a stronger dollar. As per a Financial Times report, 55 central banks made 62 policy rate increases of at least 50 basis points (bps) in April, May and June. The dollar index is currently at a twenty-year high, which has put a renewed pressure on oil and other key commodities.
Oil prices so far have been whipsawed between concerns over supply due to western sanctions on Russia and worries that central banks' efforts to tame inflation may trigger a recession impacting demand. Paul Hickin, Director at S&P Global Platts shared his views on the same.
For the entire discussion, watch the accompanying video.