On Thursday, gold prices began trading on the Multi Commodity Exchange (MCX) at Rs 58,600 per 10 grammes and fell as low as Rs 58,574 during the day. Prices on the world market were roughly $1,897.25 per troy ounce. On the MCX, silver touched an intraday low of Rs 72,111 per kg after starting the day at Rs 72,260 per kg. On the international market, the cost per troy ounce was roughly $23.41.
Two-year US yields increased by 0.82% to 5.05%, according to Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas. Ten-year yields decreased by 0.30% to 4.33%. At 103.60, the US Dollar Index ended the day 0.27% higher. The total known worldwide gold ETF holdings have now reached a 28-month low after declining for seven straight days through August 21.
Yesterday, spot gold reached $1897.87, closing with a marginal increase of 0.21%. The 10-year US rates were a little lower due to weaker-than-expected US existing home sales (July) and Philadelphia Fed non-manufacturing (August) statistics, which led to a little increase in the metal. Before inflation slows down, the US economy may reaccelerate, according to Fed’s Barkin.
Today is data day for the global manufacturing and services PMI. While Australian data disappointed, Japan’s services and manufacturing PMIs data were somewhat higher than anticipated. The day’s early focus will be on statistics from the US, UK, Germany, and Eurozone’s services and manufacturing PMIs. Today will also see the release of US new home sales data for July in addition to these PMIs.
SPOTLIGHT
At 103.75, the US Dollar Index encounters significant resistance. Strong yields and a struggling Chinese economy are still supporting the dollar. Increased worries about the Chinese economy, weaker-than-anticipated US PMIs, or weaker-than-anticipated European PMIs might push the US Dollar Index over this level, putting pressure on the price of gold. Support and resistance are at $1885 and $165, respectively, according to Singh.
Amit Khare, an associate vice president at GCL Broking, added to it by saying, “October Gold finished at 58574 (0.14%), while September Silver closed at 71,982 (0.46%). Bullion’s daily charts are trading at demand zone, and anytime we can see short covering bounce in bullions. The same is also indicated by the RSI momentum indicator. Therefore, it is recommended for traders to open new buy positions in gold and silver close to the indicated support level one with a stop-loss of the indicated support level two and to book around the indicated resistance levels: Gold October Support 58400/58200 and Resistance 58700/59000. Support 71500/70500 and Resistance 72500/73000 for silver in September.
Amid a minor decline in the US dollar and Treasury yields and in anticipation of a meeting of central bankers that may reveal clues about the direction of interest rates, the price of gold edged up and settled at $1,900.
According to Manav Modi, Analyst, Commodity and Currency, MOFSL, “the dollar index was sitting below two-month highs, while a rally that took U.S. Treasury yields to nearly 16-year highs took a pause.”
US existing home sales in July fell to a six-month low, according to data. This week, additional housing data from the US will be under scrutiny and might demonstrate the sector’s overall health.
In his remarks, US Fed director Thomas warned that the US central bank must be prepared for the prospect that the economy may start to pick up speed rather than slow down, which might have ramifications for the US central bank’s fight against inflation.
“We’ll be keeping an eye out for any clues about just how high interest rates can go during the annual Jackson Hole Symposium in Wyoming later this week. The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported Tuesday that its holdings decreased 0.5%, which negatively impacted market sentiment. Preliminary manufacturing and services PMI data from major economies will also be a focus today, according to Modi.