Gold Prices Stabilize as Markets Await Further Direction

Published on Aug 09, 2023 16:30

Gold futures were seen trading flat in the electronic trades today, awaiting to receive further cues from the US inflation data due to be released tomorrow.

The US consumer price index report is expected on Thursday, followed by the producer price index report. Richmond Fed President Thomas Barkin mentioned the central bank`s intention to assess data before considering further rate hikes.

Meanwhile, data released yesterday showed that China experienced its first consumer inflation drop in over two years in July, with producer inflation marking its tenth consecutive month of decline.

In other related news, WGC predicts that gold will be bolstered by economic concerns and heightened asset volatility, which are anticipated to maintain investor interest in the precious metal. Gold gained 3.1% in July, aided by a weaker dollar and rising breakeven inflation rates, as per WGC. While historical trends suggest August`s strength for gold, the WGC notes a less supportive environment this year due to rising yields, upward equities, and weaker demand in India and China.

MCX bullion futures for October delivery were last seen trading at Rs 59229 down RS 19 per 10 grams. A move above Rs 60000 may open the gates for 60400 and 60700 levels. International gold was latest seen trading at $ 1959.50 an ounce.