Gold Jumps above $1940 as Dollar softens

Published on Jul 11, 2023 15:35

Gold futures jumped to 3 week high in the early European trades today as dollar index fell below 102 levels ahead of the US inflation data due tomorrow.

The dollar index, which tracks the U.S. currency against a basket of major peers, slid 0.22% to 101.42, a three-week low. The fall in the greenback started on Friday after releases to softer than expected non-farm payrolls numbers. The U.S. created 209,000 new jobs in June to mark the smallest gain in more than two and a half years, the government said.

Also, US inflation outlook and remarks by Fed officials, including San Francisco Fed President Mary Dale and Cleveland Fed President Loretta Mister, indicate a potential conclusion to the current cycle of policy tightening. This suggests that the Federal Reserve is nearing the end of its tightening measures as inflation shows signs of slowing down.

International gold futures jumped 0.57% or $11.10 to $1,942.1 an ounce, the highest since June 22. The counter ended last week on a flat note on lack of movement and consolidation in bullion prices.

MCX gold futures for august delivery traded at Rs 58554 up Rs 165 per 10 grams. The counter should find resistance near Rs 59100 and Rs 59250 levels.

This week, market attention is directed towards the upcoming speeches by Federal Reserve members Neel Kashkari and Loretta Mester. The release of the U.S. Consumer Price Index, a crucial inflation report, as well as a series of economic reports from China, will also play a significant role in determining demand trends.