Gold price prediction today: Will gold continue its rally?

Gold prices are anticipated to experience a positive trend in the near-term, with the recommendation of buying on dips, according to Praveen Singh, Head Currencies and Commodities at Mirae Asset ShareKhan. Spot gold continued its winning streak for two consecutive weeks, closing 0.70% higher at $4376 during the week ending August 14. The metal began the week on a positive note, trading at $4421 per ounce at the time of this report on August 17, marking a 1% increase for the day.

The US-Iran ceasefire agreement is set to expire on August 17, but Iran's defensive stance is shifting to a more aggressive approach under a new "maximum deterrence" policy, according to Brigadier General Yadollah Javani of the Islamic Revolutionary Guard Corps (IRGC). Iran has also reportedly continued talks with Oman over the Strait of Hormuz, while the US President has ordered a reduction in joint military exercises with South Korea and threatened to bomb Oman if it hinders US-Iran negotiations.

The US Dollar Index has been on the defensive due to soft US economic data, causing traders to reduce rate hike expectations. Two-year yields remain steady at 4.17%, while ten-year yields have risen slightly to 4.71%. Over 90% of economists surveyed by Reuters expect the Federal Reserve to maintain interest rates at 3.5%-3.75% through September and beyond. Gold price outlook suggests that spot gold is expected to maintain its upward momentum.