Gold Prices Hold Below $1950 Mark

Published on Sep 08, 2023 14:08

Gold prices remained within a narrow trading range, fluctuating by just $10, but were on track to finish the week lower. This decline was attributed to recent data indicating a robust US economy, which provided the Federal Reserve with room to maintain its restrictive monetary policies or even raise interest rates further. Notably, new unemployment claims in the US reached their lowest level in over six months in the final week of August and contradicting previous signs of labor market softening. Additionally, the ISM Services PMI for August unexpectedly surged to 54.5, marking the strongest growth in the services sector in half a year. As a result, market sentiment now anticipates a more hawkish stance from the Federal Reserve in its upcoming meeting, potentially signaling a future interest rate hike. MCX bullion futures for October delivery are trading down Rs 33 at Rs 59031 per 10 grams. As the counter breaks below Rs 59100, it may fall further towards Rs 58700-500 levels. Last week the counter ended up 1.3% or Rs 755, hitting the high of Rs 59665.