Gold off seven week low

Published on Feb 22, 2023 12:13

COMEX Gold futures slipped to a near seven week low as a firm US dollar, which edged up above 104. Gold eased as a renewed surge in the US Treasury yields weighed on the metal. However, rising geopolitical tensions and heavy selling in the US equities capped losses for the metal. Upbeat Chinese Gold demand is also a supportive factor for gold. The People`s Bank of China (PBoC) announced a further gold purchase in January, the third consecutive monthly increase. Its total gold reserves rose to 2,025t, 15t higher m-o-m, according to a latest update from the World Gold Council or WGC. The yellow metal currently quotes at $1844 per ounce, up 0.12% on the day. The broad range of $1790-$1830 per ounce should emerge as a critical support area for the metal as the counter had consolidated in the same range in last week of October before breaking out of the zone and hitting a multi month high at the start of this month.