Gold Recovers; Awaits Key Economic Data Ahead

Published on Aug 14, 2023 14:16

Gold experienced a slight uptick in mid-Asia electronic trades today, trying to recover from last week`s losses triggered by a failure to sustain above $2000 per ounce and a strong US dollar. The metal`s sentiment was affected by diminishing inflation pressures in major economies and weak demand for gold investments, resulting in a two-week low near $1940 per ounce.

Domestic gold futures for October delivery were seen trading up Rs 46 at Rs 58952 per 10 grams. The counter may continue to find resistance near Rs 59100 and Rs 59190 levels today.

In July, gold rose by 3.1% aided by a weaker dollar and increased breakeven inflation rates. However, global gold ETFs continued to decrease holdings for the fourth consecutive month, reflecting changing investor preferences.

On the economic calendar front, Investors are preparing for the release of US retail sales data and the Federal Reserve`s policy meeting minutes, which could influence economic and interest rate expectations. Furthermore, inflation and GDP figures from key economies like the U.K., Eurozone, and Japan are also due. China will provide insights into industrial production, retail sales, and employment data on Wednesday.