Is gold primed for rally?

Is gold primed for rally?

After a year of consolidation, gold has formed a solid price bottom at around $1,700 an ounce. As the Federal Reserve gears up to raise rates and reduce liquidity, the precious metal is a potential top performer this year

Last week, after hitting $1,852 per ounce levels in spot market last week, gold price witnessed retracement after the profit-booking trigger, but after the announcement of 25bps interest rate hike by the Bank of England and crude oil prices surpassing $90 per barrel, the yellow metal price has rebounded and closed above $1,800 per ounce in spot market on Friday. — File photo

Published: Sun 6 Feb 2022, 5:33 PM

Gold is primed for a turnaround and could be ready to rally past $1,900 an ounce as the sentiment in the bullion market has reached its “maximum disdain,” precious metal analysts said.

Since the outlook for gold price is positive, any dip in gold price should be seen as a buying opportunity, they said.

What will trigger the gold price rally in the near term? Analysts are of the view that a slide in the dollar index will trigger the rally. Euro and pound constitute around 70 per cent of the dollar index. The Bank of