Business Standard

Thursday, December 19, 2024 | 09:42 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

Is gold's rally over? Here are key indicators to find where it is headed

Unprecedented global stimulus, negative real rates and a weakening dollar pushed bullion to a record high above $2,075 an ounce in early August

Photo: Bloomberg
Premium

The key driver of gold right now is the dollar. Photo: Bloomberg

Eddie Spence | Bloomberg
Gold’s slump this week is forcing investors to ask whether the haven asset is taking a breather or facing an even sharper decline.
 
Unprecedented global stimulus, negative real rates and a weakening dollar pushed bullion to a record high above $2,075 an ounce in early August. While some banks, including Goldman Sachs Group Inc. and Bank of America Corp., forecast even higher prices, a resurgent dollar has seen gold give up some of its gains.

Is this merely a temporary setback for the precious metal? Here are five charts that provide hints as to where gold goes next:

Dollar Dominance

The key driver

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in