Precious metal complex ended the week almost unchanged. Gold and silver prices found support at $1280/oz and $15/oz, respectively, on increasing expectation of monetary easing worldwide due to rising fears of global growth worries. Whereas base metal prices fell after China lowered its growth target for 2019 and ECB raised fears of global slowdown.
Lead and zinc prices were most hit by falling 3 percent, respectively and copper and aluminium closed the week with 1 percent losses.
Crude prices are stuck in a tug of war between supply curbs by OPEC and falling demand due to worries over global growth. Natural gas prices are gaining strength on larger than expected storage gas withdrawals during the end of winter season.
Gold prices took support at lower levels as risk appetite faded after China and ECB lowered its growth forecasts for 2019. Also, US Fed policy is expected to remain patient over its future rate hike on declining growth.
If these macro-economic worries continue, it will fuel gold prices as central banks will get pushed towards owning more gold. China increased its gold reserves for the third consecutive month followed by Russia, Kazakhstan and other countries like India, Poland, and Hungary too are collecting gold in small quantities.
After US Fed reversed its interest rate policy by pausing, analysts are expecting a rate cut by the end of 2019 amid weakening economic health. After the ECB surprised the market with the new stimulus program on account of growth fears, gold has gained further strength.
Comex Gold prices is expected to remain supportive near $1270/oz and trade positive towards $1350-$1380/oz in the coming quarter of 2019. Currently, the Comex Gold prices are trading at $1290/oz.
(The author is Commodity Analyst at Narnolia Financial Advisors)
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