Gold Prices Surge To Near Kshs.215,525 Boosted by A Pull Back In US Dollar

In global markets, gold prices climbed to a near 215,525 shillings level supported by a pullback in the US Dollar index after the investors bet that easing of lockdowns in china had the potential of bringing a global growth.

On the Multi Commodity Exchange Market, Gold Futures were up 0.32 percent to 76,608.69 shillings per 10g.

After a four-week consecutive fall, the yellow metal gained some of its lost ground and settled in the red zone on Friday, May 20 2022.

A weak Kenyan shilling that continues to face fresh lifetime lows assisted gold with additional gains on the domestic market.

As of May 23 2022, Gold Price in Kenya for the 24K is 6,973.1 shillings per gram, while the 10g gold rate is 69,730.6 shillings.

This is a rise from 6,829.0 shillings per gram for the 24K a week ago and 6,174.83 shillings about two weeks ago.

More continued worries about the global economic health continue to give the metal an appeal as a good investment option during this time since it acts as a haven.

ALSO READ: How to Identify Fake Loan Apps and How to Report Them

According to economic research analysts, investors should watch out for these essential short-term triggers that may dictate gold prices.

1. Dollar Index

So far, the Dollar Index has shed from 105 levels to about 103. It would be important to keep checking its movement. Continued shedding would increase the demand for gold, while an upward projection would mean less demand for the yellow metal.

2. US Fed Meetings

Investors should watch for the meeting set for Wednesday, May 23, 2022. The officials may announce a 50pbs cut in hike rates or vice versa.

3. Global Energy Prices

A further increase in energy prices globally would push gold prices higher since it will be viewed as a haven against high inflation.

4. US GDP First Quarter Data

The US F1 GDP will be released on May 26 2022. If the data comes below expectations, there is a possibility of gold prices climbing higher.

5. Shillings vs Dollar

Gold investors in Kenya should watch out for the shilling-dollar deviation.

The Kenyan shilling hit its lowest to close the week at 116.4 shillings, thus fueling the gold price in Kenya. If the shilling gains its lost ground, it might break the continuously rising gold prices. If not, then the yellow metal price rally will continue.