Gold Faces Renewed Pressure Ahead of Crucial US Inflation Data

Published on Aug 08, 2023 14:40

Gold came under slight pressure in the electronic trades today as dollar gained ground ahead of the key data releases later this week. The US consumer price index (CPI) report will be released on Thursday, followed by the producer price index (PPI) report the next day.

The precious metal under pressure since mid-July due to US economic resilience and speculation on the Federal Reserve`s monetary stance. International bullion futures were recently trading at $ 1967.40 down $2.60 an ounce. The counter has been constantly under selling pressure since hitting the high of $2010 on July 31st. The counter should find support in the range of $1900-1910 levels.

On the domestic front, MCX October gold futures were seen trading at Rs 59430 up Rs 10 per 10 grams. The metal continues to face resistance near Rs 60100 mark and support in the range of Rs 59300- 59200 levels.

In other market moves today, silver prices declined to $23.5 per ounce, reaching a 1-month low, whereas copper futures declined towards $3.7 per pound after reaching a nearly three-month high of $4 on July 31st. The drop was driven by a stronger dollar and worries about low demand in China, despite mounting supply pressures.