Gold Faces Pressure as US Dollar Stages a Comeback

Published on Jul 21, 2023 14:01

Gold futures faced selling pressure as the US dollar made a strong comeback, surging above the 100 mark and ending the week with a gain of over 1%. Despite this, gold is poised to close the week near $1970 levels and register a third consecutive week of gains, thanks to easing US inflation and expectations of the Federal Reserve`s monetary policy tightening cycle nearing its end.

Currently trading at $1965.80 per ounce in mid-Asia session, COMEX gold futures have gained more than 2% over the month. A crucial level for further ascent is a break and close above $1990. Meanwhile, MCX gold for August delivery is trading down Rs 195 at Rs 59357 per 10 grams. Though it has also risen over 2% during the month, it is struggling to surpass the Rs 60000 mark since 9th June.

Investors are closely monitoring the upcoming interest rate decisions from the European Central Bank and the Bank of Japan next week. Additionally, softer-than-expected UK inflation data has tempered expectations for future rate hikes from the Bank of England.