Gold bounces back; down nearly 3% for week

Published on Aug 18, 2023 13:31

Gold prices bounced back in the mid Asia trades today, extending their decline for the fourth consecutive week. The metal is down nearly 3% for the week, following sharp gains in the US dollar following hawkish interest rate statement by Fed in recent meeting minutes.

The dollar index has jumped nearly 2% so far this week, jumping to as high as 103.55 on Thursday after the minutes from the Federal Reserve`s July meeting hinted at potential future interest rate hikes due to concerns about inflation.

Concurrently, recent data indicated a decrease in new claims for unemployment benefits in the United States, indicating ongoing labour market tightness. Meanwhile, in Japan, core inflation slowed in July as anticipated, but it remained above the Bank of Japan`s target for the 16th consecutive month.

MCX October delivery bullion futures were seen trading at Rs 58440 up RS 150 per 10 grams. The metal traded in the extremely narrow range of Rs 59019 – 58275 and is down nearly 1% so far this week which is quite less intense as compared with the international futures. Next week as well the counter should continue to trade below Rs 60000 levels with supports around Rs 58000 levels.