Gold prices: Yellow metal nears Rs 1 lakh mark; time to book profits or more steam left?

Gold prices have been hovering around one month high as the yellow metal was seen slightly below Rs 1 lakh mark on Tuesday on the back of weaker US dollar and bond yields. Investors are being benefited by the volatile sentiments in the riskier asset class as the deadline of August 1 for the trade deal with the US inches closer. Gold remained range bound Rs 99,450 today on MCX.

The deal with India has been finalized even after various rounds of meetings, on the other hand the European Union is exploring a broader set of possible countermeasures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats reported Reuters.

Gold has hit a new one-month high, as once again investor sentiment shifts to the safe haven due to a combination of geopolitical and macroeconomic factors, said Ross Maxwell, Global Strategy Lead at VT Markets. Many of the factors that have driven Gold to record highs still persist and can remain catalysts for Gold to continue higher in the short-term, he said.

"Ongoing geopolitical issues continue to hold its appeal as a safe-haven. The US dollar continues to come under pressure and this makes it cheaper for people buying in non-dollars and therefore increasing demand," Ross added. "Gold is also technically bullish, and as long as this remains the case, then speculative trader sentiment will also continue to look for opportunities to buy Gold."

Jateen Trivedi, VP of Research - Commodity and Currency at LKP Securities said that reflecting a lack of fresh triggers from trade deals or major global developments. "Market participants await Fed Chair Powell’s speech later in the evening for policy cues. Looking ahead, US Manufacturing and Services PMI data will be closely tracked for direction," he said.

Gold prices have more than tripled in the last six years. According to a report from Motilal Oswal Financial Services, gold prices have surged nearly 235 per cent to hover around Rs 1 lakh per 10 grams in the Indian markets from Rs 30,000 levels in May 2019. The brokerage had maintained a positive outlook on the yellow metal with believe in it as a safe-haven asset.

However, the view has now been put on hold. Manav Modi, Analyst for Precious Metal Research at Motilal Oswal said, "We have been fortunate to be part of the gold uptrend since 2019. Following our long-standing bullish stance on the yellow metal, we are now taking a cautious pause in July 2025 - without completely turning away from it."

While normal price fluctuations will continue, for gold prices to move beyond current all-time highs, the market requires fresh and significant catalysts, Modi said. We are likely to see a period of price consolidation until the emergence of any decisive or longer-term triggers," he added.