Gold Dips as DXY Approaches 105 Mark; MCX Falls Below Rs 59k Threshold

Published on Sep 07, 2023 14:34

Gold prices extended losses in the electronic trades Thursday, and is on the verge of breaking the $1940 an ounce mark. The precious metal faced downward pressure from a surging US dollar, driven by stronger-than-expected US services sector data. The ISM Services PMI in the US unexpectedly surged to 54.5 in August, indicating the strongest growth in the services sector in six months, surpassing forecasts of 52.5. This has led to expectations of a more hawkish stance from the Federal Reserve this month, potentially signaling an upcoming interest rate increase. European Central Bank officials also warned of potential rate hikes, while Bank of England Governor Andrew Bailey suggested the central bank is nearing the end of its tightening cycle, despite lingering inflationary pressures. MCX bullion futures for October delivery are trading down Rs 71 at Rs 59017 per 10 grams. As the counter breaks below Rs 59100, it fall further towards Rs 58700-500 levels. Last week the counter ended up 1.3% or Rs 755, hitting the high of Rs 59665.