Gold Gains Support as US Dollar Weakens, Market Quiets

Published on Aug 22, 2023 14:48

Gold futures propped up in the early Europe session today amid weakness in the US dollar and lack of economic cues continued to make the markets look dull. Weakness in US dollar supported that currency traded commodities and assets. The dollar index was last seen trading at 103.01 per barrel down 0.19%. Investors prepared for the Jackson Hole gathering to shape economic and interest rate views, while China`s central bank cut its one-year loan prime rate to 3.45%, maintaining the five-year rate at 4.2%.

Meanwhile, World of Statistics unveiled gold reserve leaders in its recent update yesterday. USA leads with 8,133 tonnes. Germany follows with 3,355 tonnes, reflecting financial stability. India ranks significantly, symbolizing its cultural affinity, and holds 800 tonnes of gold. The Netherlands, with 612 tonnes, concludes the list, spotlighting India`s unique role in the global gold market.

MCX bullion futures also propped up, trading at Rs 58574 up Rs 84 per 10 grams. The counter should find resistance near Rs 5800 and Rs 59100 levels in the near term.