Gold Consolidates in Narrow Range as Market Awaits FOMC Decision

Published on Jul 05, 2023 13:34

Gold was seen hovering in the range of $1927-1938 an ounce as investors awaited the release of the U.S. Federal Reserve`s latest monetary policy meeting minutes and other economic data. Also gains in US dollar kept tab on the prices.

However, gold got back some of its lost shine despite recent gains in US dollar. The metal is up nearly $35 after falling to its 3 month low level of $1900 an ounce on 29th June. Gold gained back its safe haven appeal and hedge against inflation value got boost ahead of the FOMC as its widely expected that they will announce a rate hike at least once this year.

The US dollar index broke above 103 levels on 30th June, with the investors all geared up for US non-farm payrolls and the FOMC meeting minutes. The index bottomed out from the low of 101.49 on 22 June after Chair Jerome Powell reiterated that the Fed will likely raise interest rates at least once more this year because of persistently high inflation in the economy`s service sector and the surprisingly tight job market.

MCX gold futures for August expiry were seen trading at Rs 106 at Rs 58515 per 10 grams. The counter should find near term resistance near Rs 58700 and 58900 levels. International bullion futures were recently seen trading at $ 1933. 70 an ounce, up $4.20. The counter should find initial resistance near $1940-45 levels.