Gold Slumps to 7-Month Low of $1830 Amid Strong Dollar and Economic Data

Published on Oct 03, 2023 13:43

Gold futures dropped to $1830 per ounce, marking their lowest level in seven months, driven by ongoing pressure from a robust US dollar and rising Treasury yields. The dollar`s continued ascent, reaching ten-month highs against major currencies, coupled with the 10-year US yield hitting its highest point since 2007, signified confidence in the Federal Reserve`s commitment to higher interest rates. Favorable US economic data, exemplified by the September ISM Manufacturing PMI indicating the smallest factory contraction in nearly a year, contributed to gold`s decline.

The recent temporary agreement among US lawmakers to fund the government for an additional 45 days added to gold`s woes. Investors are closely monitoring statements from Federal Reserve officials for policy insights, and the eagerly awaited US monthly jobs report on Friday is expected to influence gold and commodity markets.

MCX December bullion futures also witnessed a significant drop, dipping to Rs 56565 per 10 grams earlier in the session, with potential support levels anticipated near Rs 56300 and Rs 55500.