Gold Approaches $1950 Mark as Dollar Weakens Ahead of US Inflation Data

Published on Jul 12, 2023 13:51

Gold futures jumped near the threshold of $1950 an ounce levels in the mid Asia electronic trades today as weakness in us dollar ahead of US inflation data due today supported the dollar traded commodities.

Gold becomes more affordable for holders of other currencies as the dollar index dipped near 101 levels and was recently down a 0.23%, reaching its lowest level since May 11. Additionally, benchmark 10-year U.S. Treasury yields decrease to their lowest point in almost a week.

Investors are eagerly awaiting the release of key economic indicators and central bank communications later today. The US will be publishing its Consumer Price Index (CPI) and Core CPI data, providing crucial insights into inflation trends and consumer purchasing power. Also Bank of Canada will be releasing its rate statement and report, outlining its assessment of the Canadian economy and potential changes to interest rates.

MCX august gold futures were trading at Rs 58778 per 10 grams up by Rs 5. The contract should find resistance near 59100 levels as said earlier and support near Rs 58700 levels. Meanwhile, September silver futures were trading at Rs 71175 per kg up Rs 58. Silver should be finding resistance near Rs 71500 and 71700 levels.

Its international counterpart jumped past 1940 threshold and was recently seen trading at $1,939.20 per troy ounce up $2, while COMEX Silver futures were trading at $23.33 per troy ounce up 0.19%.