Gold Retreats from 2-Month Highs

Published on Jul 31, 2023 15:05

Gold futures retreated from their two-month highs above $2002 an ounce on Monday, yet remain on track to achieve a 2% gain this month. The precious metal is being supported by expectations that major central banks may be nearing the end of their current monetary policy tightening cycle due to easing inflationary pressures. Recent data in the US showed that annual core PCE prices rose 4.1% in June, the lowest since September 2021. However, the sturdy gains in the US dollar, reaching towards the 102 mark, have limited the gains for dollar-denominated commodities like gold. Last week, the Federal Reserve implemented a widely anticipated 25 basis point rate hike, possibly signaling the conclusion of the current tightening cycle. As of now, COMEX bullion futures were trading at $1991.40, down $8.50 per ounce, while MCX bullion futures for October delivery were at Rs 59629, down Rs 156 per 10 grams. Both international and domestic bullion futures are set to end the month with a gain of nearly 2%.