Gold in Watchful Mode: Powell`s Testimony and BOE Decision in Focus

Published on Jun 22, 2023 15:04

Gold futures were seen trading in a narrow range today with the traders waiting for further cues on day two of Federal Reserve Chair Jerome Powell`s testimony and the Bank of England`s rate decision later in the day.

COMEX main contract for gold was seen trading at $1938.10 down $6.80 an ounce. The metal had tumbled to new low of $1929 this month following the release of testimony yesterday. The break of this support may lead the prices to find next support near $1923-15 levels and breach of that might lead to further selling in the commodity.

Dollar index broke below 102 levels post Powell`s Testimony yesterday, and the weakness continued today with the counter trading at 101.61 down 0.07%. The currency came under further pressure as it was revealed in the semiannual Monetary Policy Review that nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year.

COMEX gold futures are down for the third straight session and are currently quoting at $1943.40 per ounce, down 0.08% on the day. However, dollar index steadying below 102 mark could limit losses in the precious metal.

MCX gold futures for august delivery hit new low for the day today trading down Rs 254 at Rs 58460 per 10 grams. The metal should be finding initial support near 58330 levels and later near 58150 levels.

Later today, along with Powell, the Bank of England`s rate decision will be a focal point for market participants. Additionally, the closing performance of gold in the second quarter will offer valuable insights into the potential price trajectory for the summer months.