Gold Slips Below $1,950 Amid Strong Dollar and Economic Uncertainty

Published on Sep 06, 2023 13:52

Gold prices slipped below $1,950 per ounce amid a robust US dollar and global economic uncertainties, prompted by disappointing PMI figures in China and Europe. Federal Reserve Governor Christopher Waller`s recent remarks indicated the Fed`s flexibility in assessing the need for further interest rate hikes, given easing inflation and weak US job data, leading to expectations of a steady rate decision in September and a reduced likelihood of near-term rate increases. Concurrently, the US dollar strengthened against major currencies, particularly the Australian dollar, following the Reserve Bank of Australia`s decision to maintain interest rates. In contrast, Australia`s Q2 GDP grew by 0.4%, driven by strong export demand, though year-on-year growth slowed to 2.1%. MCX bullion futures for October delivery traded lower at Rs 59,141 per 10 grams, with a potential break towards Rs 58,700-58,500 levels, after last week`s 1.3% gain or Rs 755, reaching a high of Rs 59,665.