Gold Exhibits Jitters Prior to FOMC; Records Almost 4% Decline in August

Published on Aug 16, 2023 14:45

Flat moves were seen in gold as trader’s awaiting the FOMC meeting minutes after the data yesterday showed strong U.S. consumer spending data fuelling speculation that the Federal Reserve was not done with its interest rate hiking cycle.

With moderate recent Consumer Price Index (CPI) inflation and signs of labor market softening, the Federal Reserve`s September meeting is not anticipated to bring a rate hike. The central bank`s cautious management of expectations makes surprises improbable. Despite favourable inflation trends, the Fed seeks more evidence of sustained improvement, as core inflation remains notably above its target.

International bullion futures were last seen trading at $ 1936.40 an ounce. The safe haven metal is down nearly 4% so far this month after ending up more than 4% in July. MCX October gold futures were trading below the psychological Rs 59000 per 10 grams, down Rs 135.

Meanwhile, India`s Gold imports stood at Rs 28779 crore in July 2023, up 52.46% compared to July2022. Gold imports in April-July 2023 rose by 8.56% compared to same period last year. The silver imports came in at Rs 250 crore in July 2023, down by a 97% compared to July 2022. Silver imports in April-July 2023 are also down 90.71% on year ago basis.