Partner With Us NRI

Gold Loses Momentum as the Dollar Makes a Comeback

Published on Sep 05, 2023 13:16

Gold futures dipped below $1,970 per ounce but remained near their strongest levels in a month as indications of a cooling US economy have fueled optimism that the Federal Reserve might halt interest rate hikes for the rest of the year.

The Dollar index hopped back above the 104 against the basket of six major currencies after the latest US jobs report revealed an unexpected rise in the unemployment rate to 3.8% in August, surpassing market expectations. Despite adding 187,000 jobs last month, which exceeded the anticipated 170,000, the US labor market has stayed below the 200,000 benchmark for three consecutive months, suggesting a gradual labor market slowdown. Additionally, US manufacturing activity improved in August, though it continued to contract for the tenth month in a row. This has led markets to speculate that the Federal Reserve is likely to maintain current interest rates this month and may refrain from further rate hikes for the remainder of the year.

MCX Bullion October futures were last seen trading at Rs 59426, up Rs 105 per 10 grams. Last week the counter ended up 1.3% or Rs 755, hitting the high of Rs 59665. This week the metal should face resistance near Rs 59700-900 levels and support near Rs 59100 – 59500 levels.

Powered by Capital Market - Live News