Gold Slips Slightly; Up 8% From Years Low

Published on Jul 14, 2023 15:20

Gold was seen under slight pressure in Asia electronic session today, however the metal is up 8% from year’s low of $1810.8 hit on 28th of February. Also the metal has come back steadily after hitting the 4 month low of $1900 hit last month and is already up more than 3%.

The recent rally has been widely supported by the sharp drop in US dollar, however a break and close above $1990-2000 levels can be critical for the yellow metal. Cooling inflation numbers and pause in the Fed rate hike cycle might take a toll on bullion prices.

MCX August gold contract was last seen trading at Rs 59218 down Rs 21 per 10 grams. So far in the session the metal has traded in the range of Rs 59177- 59308. The counter might Rs 59390-500 levels. A break above Rs 59900 can be critical.

MCX silver has also gained impressively, rising above Rs 75000 per kg up Rs 111. The counter should find resistance near 76000-77000 levels in the near term. The international silver futures were seen trading near $25 per troy ounce levels. The counter is up by whopping 22% from the year’s low of $19.9 hit in march and is down nearly 8% from years high of $26.4 hit in May.

The US dollar index hit 15-month low, breaking below the crucial 100 mark after US CPI data showed that the US inflation hit two year low. The index is down more than 3% so far this month.