Mr. Sandip Raichura – CEO of Retail Broking and Distribution & Director, PL Capital
“Gold is currently trading very nervously around USD 3400 levels and just kissing the 20 DMA. Tariff uncertainties and weak payrolls data in the US have kept the metal from correcting further even as the Fed stance is becoming more difficult to predict given the emerging US data – stagflationary in nature- even as there is currently a 90% probability of a 25 Bps cut in September. The latest advance reflects safe-haven flows into the metal, sparked by President Trump’s punitive tariffs on Indian imports of 50% and threats to Japan for an extra 15% , reviving fears of a global trade war or possible realignments that could eventually hurt the USD while being dollar positive near term.
The Russia and Chinese governments have been busy buying gold , crossing 200 tons in H1CY25 WHILE gold ETFs have seen pushing net inflows to $4 billion over the past month. As mentioned in our previous note, while near term headwinds for gold could be there, and may lead to spikes either side, our mid term targets remain above USD 3700.”