Gold Prices Drop $10 as Dollar Strengthens Ahead of US PMI Release

Published on Jul 03, 2023 13:55

Gold futures tumbled down more than $10 in the mid Asia electronic session today as dollar strengthened ahead of the US manufacturing PMI numbers due to release later in the day.

In the major market moving news for the precious metals this week, is the Fed Minutes, and the nonfarm payroll report, which will provide insights into inflation and economic activity.

COMEX international bullion futures upfront month contract was seen trading at $1919.30 down $10.10 per ounce. The counter should continue to find support near $1900 and $1880 levels.

Second quarter of 2023 saw the metal losing 3.4% or $68.3. However, in the first half of 2023 gold gained 5% or $91.7 at $1917.9 per ounce.

Correlation of gold and dollar can be seen in the past prices as well. The dollar index has gained 0.8% in Q2 of 2023 with gold losing 3.4% during the same period whereas dollar registered lofty gains of 6.5% in Q2 of 2022 and that saw gold losing by hefty 7.5% during the same period.

MCX gold futures for august delivery once again broke below Rs 58000 levels and was last seen trading down Rs 191 at Rs 58020 per 10 grams. The metal should continue to find Rs 57700 and Rs 57300 levels.