Gold Slips Amid Strong Dollar and Hawkish Fed, Consolidation Continues

Published on Sep 25, 2023 14:09

Gold futures slipped in the Asia electronic trades amid concerns over a hawkish Fed, global growth, weak Eurozone data and strength in US dollar. However the yellow metal is still in a consolidation phase hovering within the range of $110 ie. $2,010 and $1,900 since June this year.

The strong US dollar dampened the metals appeal off late. the US Dollar hitting a six-month high, with the Dollar Index reaching 105.55, its highest level since March 2023. The Federal Reserve`s recent hawkish stance continued to shape currency markets, propelling the US Dollar to 148.45 against the Japanese Yen, up from 147.58, after the Bank of Japan maintained its ultra-easy monetary policy.

The gold market has been consolidating between $1,900 and $2,010 since June, with the third quarter showing the narrowest range at just $102, emphasizing the anticipation for a significant breakout to break this period of stagnation and establish a new trend.

Domestic gold futures traded at Rs 58860 down Rs 86 per 10 grams on Multi Commodity Exchange and touched an intraday low of Rs 58,845. Meanwhile, silver tumbled down more than Rs 300 per kg and falling to the intraday low of Rs 73039 so far today.

The international bullion futures hovered around $1,940 per troy ounce, down 0.25% and silver futures trading at around $23.70 per troy ounce, down 0.62%

This week`s focus centres on crucial U.S. data points, including GDP, inflation, consumer confidence, and Core durable goods orders. Additionally, market watchers are awaiting statements from Fed Governor Powell, which could provide further insights into monetary policy.