Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn more
Money Manager

Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

Partner Portal
About ThinkMarkets
 
Liverpool FC Sponsorship

ThinkMarkets is the Official Global Trading Partner of Liverpool FC

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
Security of Funds

Security of your funds is our number one priority. We safeguard our Client funds in top tier banks.

Learn more
ThinkMarkets News

Keep up to date with our latest company news and announcements.

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Create account

Will gold shine again as the Indian wedding season gets into swing?

Agnes Lovasz Agnes Lovasz 10/11/2022
Will gold shine again as the Indian wedding season gets into swing?  Will gold shine again as the Indian wedding season gets into swing?
Will gold shine again as the Indian wedding season gets into swing? Agnes Lovasz

Gold price may get a boost from traditions around Indian nuptials

 

The price of gold has been under pressure ever since the US Federal Reserve ratcheted up its fight against inflation. With India’s wedding season on the horizon, though, it is about to get a boost.  
 

India is the world’s second-largest consumer of the precious metal behind China and weddings account for about half of the country’s annual gold demand, according to the London-based World Gold Council, an industry organisation.  
 

In India, gold plays a central role in weddings and religious festivities. Gifting gold jewellery and wearing gold ornaments for celebrations are deeply embedded in the country’s culture. The shiny metal is often seen as a symbol of wealth and status, regardless of faith or ethnicity.  
 

Jewellery demand 

 

Demand for jewellery is still one of the most important factors in shaping the global gold price. More recently, though, it has been overshadowed by speculation about how far a rally in the US dollar is going to go and how much higher US interest rates are going to rise. Traders will need to monitor these economic events closely when considering trading CFDs on gold, as both could affect the price.  
 

Gold prices soared earlier this year, peaking at USD 2,034 per ounce in March, as a pick-up in inflation worldwide and Russia’s invasion of Ukraine prompted investors to buy traditional safe-haven assets.  
 

Gold prices have slumped about 18% since then as the US Federal Reserve began an aggressive rate-hiking campaign to fight the fastest inflation more than 40 years.  


Source: ThinkTrader

The spot price of gold (XAU/USD), year-to-date chart
 

“Gold struggles when rates are going up and loves it when inflation is out of control,” Carl Capolingua, a Melbourne-based market analyst at ThinkMarkets, said. “Certainly, rates are going up, but inflation expectations are largely in check. The market believes the Fed is committed to fighting inflation.”
 

Relentless Fed


The Fed has raised US interest rates in four large steps to between 3.75% and 4.00% by early November. Its target rate was close to zero at the beginning of the year. It is predicted to lift them again in December and then again in early 2023. 

Higher interest rates are driving up safe-haven demand for the dollar. This makes gold, which is a traditional store of value but has no yield, less desirable in comparison.

The interest-rate increases helped push the US dollar index (DXY) to a two-decade high. This measures the dollar’s strength against a basket of its major counterparts. As gold contracts are priced in US dollars, the price of gold has an inverse relationship with the US currency. 

“As the US dollar has appreciated, ironically on the back of those rising US rates, gold has struggled further,” Capolingua said. “If any of the parts of the puzzle change – for example rate rise expectations shift back to neutral or easing, triggering some US dollar weakness, or inflation expectations become unhinged – then gold can rally.”

Temporary relief, though, may come from elsewhere. The wedding season in India gets into gear after Diwali and runs through March. With India alone accounting for more than a quarter of global jewellery consumption, the impact is bound to lend support to the gold price in coming months. 

Have a view on the gold price? Start trading gold contracts for difference (CFDs) on the award-winning ThinkTrader platform. Benefit from razor-thin spreads, ultra-fast execution and going long or short on gold. 

 

 

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Meet our contributors
Carl Capolingua
×
Carl Capolingua
Market Analyst, Melbourne

Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions. Specialising in Australian and US stock markets in particular, Carl uses a top-down approach to assess the global macro picture before using both technical and fundamental techniques to select stocks. He regularly appears as an expert commentator on a number of media outlets throughout the Asia-Pacific region.
 
 
 

Lesego
×
Lesego Mthombothi
Market Research Analyst, South Africa

Lesego Mthombothi is an experienced market research analyst and investment professional who proudly holds an honours degree in investment management and completed her CFA level 1.
 
 
 

Mahmoud Alkudsi
×
Mahmoud Alkudsi
Chief Markets Analyst, MENA

Mahmoud is a market analyst, with over a decade of experience in financial markets. He follows main market movers and tracks their effect on the price chart. Mahmoud mixes technical and fundamental tools with a deeper focus on the technical side, and with his wide experience in providing educational and guidance materials to all levels of traders, he helps them in making informed trading decisions. Before joining ThinkMarkets, Mahmoud was head of market research departments in different reputed financial companies, where he provided market analysis for a variety of asset classes, including FX, equities, indices, and commodity futures. As an experienced market commentator, he was hosted by too many print and broadcast media, including not limited to Sky News Arabia, France 24, Alarabyia, Alsharq-Bloomberg, and CNBC Alarabyia to discuss key risk events their clear impact on the price action. Mahmoud holds a Master of Business Administration (MBA) from Cardiff Metropolitan University of Wales, UK, and speaks Arabic, English, and Spanish.

Shawn
×
Shawn Lee
Market Analyst, Malaysia

Shawn Lee has over eight years of experience in the financial market as a market analyst. Shawn provides market key insights and trade ideas through the market and technical analysis. He also held trader roles and guided traders in maximising one’s trading success.

Carl Capolingua
Carl Capolingua
Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions.
Lesego
Lesego Mthombothi
Lesego Mthombothi is an experienced market research analyst and investment professional who proudly holds an honours degree in investment management and completed her CFA level 1.
Mahmoud Alkudsi
Mahmoud Alkudsi
Mahmoud is a market analyst with over a decade of experience in financial markets. Mahmoud mixes technical and fundamental tools with a deeper focus on the technical side, and has experience in providing guidance to all levels of traders.
Shawn
Shawn Lee
Shawn Lee has over eight years of experience in the financial market as a market analyst. Shawn provides market key insights and trade ideas through the market and technical analysis. He also held trader roles and guided traders in maximising one’s trading success.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top