Gold Holds Steady around $1920 Amidst Lack of Market Cues

Published on Aug 21, 2023 14:23

Gold futures are currently holding steady around $1920 an ounce in Asia`s electronic trading session due to a lack of significant market cues. The precious metal experienced a notable decline for the second consecutive week in the previous week, closing down by 1.5%. This decline was largely attributed to the impact of the minutes released from the Federal Reserve`s July meeting, which hinted at the potential for further interest rate hikes due to concerns about the upward trajectory of inflation. Another factor in play was China`s central bank decision to reduce its one-year loans prime rate by 10 basis points, a move that established a new record low of 3.45% during its August fixing.

Looking ahead, investors are set to closely monitor several economic indicators this week. Key data points include US and Europe Purchasing Managers` Index (PMI) figures, unemployment claims, consumer sentiment data from the US, as well as GDP figures. Additionally, the German business climate index will provide insights from the European region.

Shifting the focus to the Indian market, MCX October delivery bullion futures were observed trading at Rs 58347, indicating a decrease of Rs 28 per 10 grams. Notably, during the previous week, gold exhibited a very narrow trading range between Rs 59019 and Rs 58275, ending the week with a decline of less than 1%. This decline was less intense compared to the movement in international futures. The counter should find support near Rs 58000 levels this week.