Yellow metal prices hit a 5-week high last week as the dollar index weakened and global inflation slowed. Indeed, last week, the precious metal finished in a positive zone for the fourth week in a row, resulting in a weekly gain of around 1.37%.

According to commodity market experts, the overall outlook for gold is positive and could reach 53,500 rupees on MCX in the short term. For them, the spot price of gold was trading between $1,760 and $1,820 per ounce and could reach $1,850 in the short term.

There are five main triggers that could dictate the price of gold in the short term. These are: the price of crude oil, which, according to Sugandha Sachdeva, vice-president, “remained volatile during the previous week and any sudden movement in the same direction would have implications for inflation expectations as well as for gold prices.” Also, we can note the Dollar Index, as the second trigger likely to dictate the price of gold in the short term. For this purpose,

Sugandha Sachdeva says, “The key variable to watch would be the movement of the dollar index. After slipping to lows of around 104.63 over the week, the greenback was seen forming a base and recorded a strong recovery towards the end of If the DX manages to keep above the 104.50 mark, we could see selling pressure on the same Tall Precious.” These include the U.S. Retail Sales Data Release, the Rupee to the Dollar, and World Economic Data.