Gold Futures Extend Gains, Dollar Weakness Supports

Published on Feb 19, 2024 13:43

Gold futures rose for the third consecutive session after dropping below $2000 an ounce on February 14th. The recent weakness in the US dollar has also boosted dollar-denominated assets. The dollar index traded slightly lower at 104.09 due to light trading on a US holiday. Last week, the greenback surged almost 1% to a three-month high before retreating, driven by mixed US economic data. While January saw increases in US consumer and producer prices, whereas retail sales were lackluster. Market sentiment has shifted, with expectations for total easing now below 100 basis points, down from 150 bps at the start of the year. MCX April delivery gold futures rebounded above Rs 62000 levels, gaining Rs 162 per 10 grams.