Gold Edges beyond $1,940: Eyes on US CPI and China Economic Indicators

Published on Nov 13, 2023 13:56

Gold remained below $1,940 an ounce in the electronic trades Monday, marking its lowest levels in over three weeks. The precious metal faced headwinds from a robust dollar and rising Treasury yields, with investors preparing for US inflation data. Last week, gold incurred a nearly 3% loss fueled by hawkish remarks from Federal Reserve officials, including Chair Jerome Powell expressing uncertainty about inflation control measures. Moody`s downgrade of the US credit rating outlook from stable to negative offered some support to gold, citing escalating fiscal deficits and political standoffs in Washington. Traders are now keeping an eye on upcoming US Consumer Price Index (CPI) with the Fed officials, including President Mary Daly and Chair Jerome Powell expressing caution on concluding the interest rate cycle. A potential December rate hike looms if CPI surprises on the upside, impacting non-yielding assets like gold. Concerns over China`s economic growth further influence gold prices, with this week`s Retail sales and industrial production data from China and Tuesday`s US CPI release crucial for market direction. MCX December futures continued to trade below Rs 60000 mark and was trading down Rs 18 per 10 grams.