GOLD SEES MODEST GAINS AS DOLLAR STRENGTHENS AMID MIXED ECONOMIC DATA

Published on Oct 05, 2023 14:15

Gold futures saw slight gains in mid-electronic trading as the US dollar continued to strengthen, supported by robust PMI and manufacturing survey data. Traders are eagerly anticipating the upcoming comprehensive US monthly jobs report and closely monitoring statements from Federal Reserve officials. US economic indicators presented a mixed picture, with strong services ISM PMI and manufacturing survey data supporting the Fed`s cautious stance. However, job-related data was less conclusive, with the JOLTS report indicating increased job openings, but the ADP report revealing the smallest job addition by US private employers since January 2021. The dollar reached its highest levels in nearly 10 months against a basket of currencies, while the 10-year US Treasury yield surged to its highest since 2007. These developments were driven by expectations of the Federal Reserve maintaining higher interest rates for an extended period, raising the opportunity cost of holding non-yielding assets like gold. Domestic bullion futures for December delivery traded down by Rs 17 at Rs 56,704 per 10 grams, while international bullion futures were trading at $1,835.5 an ounce.