Top Four Triggers That Might Dictate Gold Prices This Week

Gold and silver prices closed on a negative note last week. On the Multi Commodity Exchange, gold prices corrected 0.42 percent, whereas the spot gold price tumbled around 0.72 percent in this period.

However, bullion experts expect weak US consumer sentiment data and fear of recession to support the gold and silver prices this week.

Gold Price in Kenya as of 27^th June 2022 costs 6,952.3 shillings per Gram. This is an increase from 6,931.8 shillings per Gram trading last week.

Meanwhile, the 10 Grams Gold Rate was 69,522.6 shillings compared to 69,317.5 shillings last week.

Several economic data releases are lined up from the US, Europe, and Japan that will provide further insights into the global economy and steer gold prices, including;

1. Dollar index

The first significant variable that can potentially affect gold prices this week is the movement of the dollar index as it competes with gold as a haven.

In the past week, the US dollar effort to breach the 105 mark has been hit hard after it witnessed its first weekly decline of June.

Market participants are also trying to figure out whether or not the central banks will raise rates aggressively amid the growing risks of a global recession, leading to some pressure on the greenback.

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Continuous pressure on the Dollar index will favor the yellow metal prices.

2. Shillings VS Dollar

The Kenyan shilling depreciated by 0.3 percent against the US dollar to close the week at 117.7 shillings, from 117.3 shillings recorded the previous week, partly attributable to increased dollar demand from the oil and energy sectors.

As a fall in the shilling leads to a rise in gold prices, investors are advised to keep an eye on this critical domestic trigger for the yellow metal.

3. OPEC+ meeting

The OPEC+ meeting scheduled for this week is expected to widely affect the price of gold since it will touch on the crude oil prices.

The discussion of the meeting is widely expected to plan the increase of oil output by 648,000 BPD in July and August 2022.

Any sharp move in crude oil prices depending on the group’s production policy will have a bearing on the inflation rates and, of course, support the precious metal’s prices.

4. US GDP Q1 data

The US gross domestic product (GDP) data for the first quarter is expected to be out this week. If the numbers are disappointing, speculations for a slowdown in the US economy will strengthen further.

This will, in turn, call for the acquisition of a haven like gold. However, if the numbers are exciting,  gold prices will automatically drop to their lowest this week.