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European GDP data to ECB meeting: Top 5 triggers for gold price this week

Europe and Japan's first quarter GDP data: In the economic calendar, Japan and Europe will release their first-quarter GDP report that will be keenly watched to gauge the global economic outlook, say gold experts.Premium
Europe and Japan's first quarter GDP data: In the economic calendar, Japan and Europe will release their first-quarter GDP report that will be keenly watched to gauge the global economic outlook, say gold experts.

  • Gold price connect with ECB meeting: Any shift in the dovish stance of policymakers could be a negative factor for the dollar index, which may favor gold prices, believe experts

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Gold price outlook: The yellow metal price ended third successive week on the higher side on MCX after ease in US Dollar Index. The precious metal price remained under pressure at the beginning of the week, where prices fell to a two-week low as US treasury yields advanced on speculation of further rate hikes to tame inflation. So, those who want to invest in gold or having position in gold are advised to remain vigilant about up-coming gold price triggers like European first GDP data, ECB meeting, US inflation data, etc. are some of the key triggers that may dictate gold price in near term.

Here we list out top 5 triggers for gold price in near term:

1] ECB meeting: "On the macro front, we have the ECB meeting, which will be in the spotlight after the latest data has flagged concerns about inflation in the Eurozone, as it hit the highest level on record owing to rising energy costs. Central bank meetings from Australia & Russia would also be in focus during the coming week. Any shift in the dovish stance of policymakers could be a negative factor for the dollar index, which may favor gold prices." said Sugandha Sachdeva, Vice President — Commodity & Currency Research at Religare Broking Ltd.

2] Europe and Japan's first quarter GDP data: In the economic calendar, Japan and Europe will release their first-quarter GDP report that will be keenly watched to gauge the global economic outlook. A disappointing data may trigger demand for gold.

3] US inflation data: "Towards the end of the week, investors will closely eye inflation figures from the US, and that would be a key trigger for gold prices in the near term," said Sugandha Sachdeva of Religare Broking.

4] RBI MPC meeting: On the domestic front, RBI monetary policy decision will be released at the beginning of the week which may set the direction of the Indian rupee and would also be a key variable for gold prices in the domestic market.

5] Dollar index: Dollar index has pared some losses at the end of this week and it has sustained above 101 levels. Any further weakness may trigger sharp profit-taking in the US dollar and such development would be a good news for gold price rally.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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