The dollar index eased a bit in the early morning session on Monday 18th July 2022, amidst speculations that European Central Bank (ECB) might raise the interest rate to 75 bps in its monetary policy meeting scheduled on 21st July 2022.
The ease pushed gold prices upwards on the domestic and spot market. For instance, gold rates went up 379.41 shillings per 10 gm to 50,363 levels on the Multi Commodity Exchange. Meanwhile, the Spot gold price added near 1,066.50 shillings per ounce and hit 203,227.50 shillings levels.
Gold ounce price in Kenya as of 18th July 2022, is 203,155.62 Kenyan Shilling per ounce. Gold gram price is 6,555.1 shillings per gram 24K, 6,282.0 shillings per gram 23K, 5,735.7 shillings per gram 21K, and 4,916.3 shillings per gram 18K.
Gold Unit Gold Rate in Kenyan Shilling
Gram 24K 6,555.1 KES
Gram 23K 6,282.0 KES
Gram 22K 6,008.8 KES
Gram 21K 5,735.7 KES
Gram 18K 4,916.3 KES
Other factors to look out for
Dollar index
Any cool-off in the dollar index would lead to some respite in gold prices while on the contrary, a further sustainable rise above the 109.50 mark would mean more pressure on gold prices
Shillings Vs Dollar
The ever-depreciating shilling is creating more market opportunity for the yellow metal as most investors turn to it as a hedge against uncertain economic conditions.
The Kenyan shilling depreciated by 0.2 percent against the US dollar to close the week at 118.3, from 118.1 shillings recorded the previous week.
If the shilling sinks further against the dollar, then gold prices will continue rising while any comeback of the shilling will lead to a fall in gold prices.
China crisis
The Evergrande crisis in China has taken a big toll on the real estate sector of the dragon nation. Now, the rising Covid cases in China and sluggish demand is going to impact gold prices as well.
Investors can expect the following in the short term.
Gold is expected to trade range-bound between 201,450 to 205,005 shillings per ounce levels ahead of the ECB meeting. On MCX, it is projected to trade between74,122.28 to 75,460.22 shillings per 10 gm levels, according to market experts.
Bulls can buy gold at around 74,410.38 shillings for the target of 75,151.52 shillings levels whereas bears can sell gold with a stop loss of 75,521.61 shillings for the target of 74,408.96 shillings.
Also, if the precious metal does not close above the 76,261.46 shillings per 10 gm mark, prices remain vulnerable to further decline towards the key support zone of $1680 to $1675 per ounce.
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