Gold Surges Beyond $1,940 But Likely To Close Week With Minimal Gains

Published on Sep 15, 2023 14:24

Gold prices rose above $1,940 per ounce on Friday but were on track to finish the week with minimal changes. Investors remained cautious as they evaluated global economic and monetary policy developments. Earlier in the week, the dollar strengthened due to strong US economic data, increasing expectations that the Federal Reserve would maintain its restrictive monetary policy for a while.

In the latest move, the People`s Bank of China reduced the reserve requirement ratio for all banks by 25 basis points, effective from September 15, aiming to maintain ample liquidity and support their economic recovery efforts. On US front, traders are anticipating the Fed to keep interest rates unchanged next week, although the central bank`s actions in November remain uncertain. In contrast, the European Central Bank raised rates by 25 basis points on Thursday, likely marking the end of its current tightening phase. MCX bullion futures for October delivery jumped above Rs 58800 levels and was last seen trading up Rs 142 per 10 grams. The metal should continue to find resistance near Rs 59100 levels.