Analyst says gold upside may be capped by Fed tightening risks
In short
Praveen Singh of Mirae Asset Sharekhan said gold may not rise much if the US Federal Reserve keeps tightening. He said stronger US economic data or a rebound in oil prices could also hold gold back.
The view matters for gold investors because it suggests gains may be limited even after the US midterm outcome.
What the reporting says
Praveen Singh of Mirae Asset Sharekhan said gold's upside could stay limited as expectations of further Federal Reserve tightening persist. The comment came as he noted that stronger US economic data or a rebound in oil prices could keep pressure on the metal. The assessment leaves gold mildly supported by the US midterm outcome but restrained by policy risk.
Why it matters
Praveen Singh of Mirae Asset Sharekhan said gold could have some support after the US midterm outcome, but upside may remain capped if the Federal Reserve continues tightening. He pointed to firm US economic data and a rebound in oil prices as risks that could weigh on the metal. The comment is relevant to gold traders watching policy expectations and macro data.