Gold Slips as Dollar gains ahead of ISM & unemployment claims

Published on Aug 03, 2023 16:28

Gold futures slipped below $1970 an ounce levels in the Asia electronic trades today as dollar strengthens ahead of unemployment claims and ISM index.

The dollar index traded up 0.17% at 102.57 against the basket of 6 other currencies after the most recent data revealed a stronger-than-expected increase in US private payrolls for July, indicating a robust job market.

On another note, Fitch Ratings recently downgraded the US`s long-term credit rating from AAA to AA+, citing expected fiscal challenges over the next three years and a significant and increasing government debt burden. Fitch also predicted a mild recession in the last quarter of 2023 and the first quarter of 2024.

International bullion futures were seen trading at $1969.50 down 0.28%. The counter is down 2% after hitting the high of $2010, its highest level in more than 2 months. Investors are now turning their attention to upcoming US economic data releases and the Bank of England`s interest rate decision later this week. The Bank of England is expected to raise interest rates to a 15-year high of 5.25% from 5% on Thursday, as inflation remains the highest of the world`s major economies.

MCX Gold October futures tumbled down Rs 142 at Rs 59329 per 10 grams. The metal might witness range bound activity until it breaks above Rs 59900 levels.