Gold may shine brighter

On Thursday Gold regained some of its losses that had the previous day, but on Friday broke out of its weekly range and marked 3-week high at $1267. This move clearly speaks that markets have already priced-in the upcoming rate hike next month. The latest release of macro data in USA also supported the precious metal and bulls are back on the stage after being behind the scene near two months.

Bulls would be eyeing to conquer higher levels are here five reasons that will build on their strategy for up-surge:

Failure in index growth

US indices may be close to new record values, but the risk of correction is greater than ever. Trump's election victory was the last factor to accelerate the rise in the indexes. It is Trump, however, that will be the basis of the next bigger correction or bearish market.

The dollar may continue to become cheaper

The Fed’s  Minutes pointed out that the reserve might not hurry with aggressive action on interest rates. This is very likely to initiate a further decline in the dollar, which is good for the price of gold.

Negative interest rates in an environment of rising inflation

A slower rise in interest rates in the United States, in the midst of seeing the first signs of inflation, could result in negative real interest rates. Such an environment is extremely beneficial for assets that do not bear interest, such as gold.

Geopolitical risks

Geopolitical risks are serious. From the UK election next month to the potential escalation of North Korea's tensions. Gold has always been well-prone to risks.

Growing stocks of India

India is one of the largest users of gold. The jewellers add to the gold stocks before the new sales tax comes in on July 1st.