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Gold Prices Rise, but Remains Tight Ahead of Payrolls Data

Published on Jul 07, 2023 13:48

Gold futures were seen trading in an extremely tight range in midday Asia electronic trades today, with traders in wait and watch mode ahead of the employment data from US.

International bullion futures were last seen trading at $ 1920.20 up$4.4 per ounce. The trading band was quite low, with the counter trading hardly in the range of $7.

According to the latest report on gold trends by the World Gold Council (WGC) the physically-backed gold exchange-traded funds (ETFs) experienced net outflows in June 2023, putting a halt to the three-month inflow streak from March-May 2023. The collective holdings of global gold ETFs fell by 56 tonnes ($3.7 billion) to 3,422 tonnes, with their total assets under management (AUM) reaching $211 billion, down 4 per cent m-o-m.

The report also revealed that given gold`s positive performance in H1, a severe investor unwind would be required for the average 2023 gold price to fall below its 2022 average of US$1,800/oz. On the other hand, if the risk of a recession increases, gold investment could see upside due to higher volatility and a preference for safe-haven assets during economic deterioration.

Domestic gold futures for august delivery was last seen trading up Rs 94 at Rs 58495 per 10 grams. The counter should find upside cap at Rs 58700- 900 levels.

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