Gold Jumps Above $1,960 on Soft US Data & Dollar

Published on Aug 30, 2023 14:18

Gold held firm above $1,960 per ounce after gaining more than $20 or nearly 1% supported by weaker-than-expected US economic data. The metal`s ascent was also propelled by a weakened dollar and reduced US Treasury yields, sustaining its three-week high position.

US dollar index lost ground and tumbled below 104 mark against the basket of 6 currency pairs after concerns over heightened US interest rate hikes were alleviated due to indications of economic fragility in the country. Recent economic indicators disclosed a 2.5-year low in US JOLTS job openings for July, coupled with a significant decline in consumer sentiment in August. Market attention now centres on the impending release of the forthcoming Q2 GDP data, PCE price index and nonfarm payrolls data for deeper insights into the trajectory of interest rates in US.

COMEX gold futures continued to trade near three-week peaks, hitting day’s high of $1966 an ounce in the Asia electronic trades today. MCX bullion October futures were trading up Rs 54 at Rs 59320 per 10 grams, with the next resistance expected near Rs 59500 and Rs 59700 levels.